On May 30, 2024, Tidewater Midstream & Infrastructure Ltd. announced an $87 million offering of 8.00% convertible unsecured subordinated debentures, maturing on June 30, 2029. Priced at $1,000 per debenture, these securities bear interest semi-annually, starting December 31, 2024, and can be converted into common shares at $0.78 per share, a 25% premium over the $0.625 reference price. The debentures are non-redeemable until June 30, 2027, and redeemable afterward if Tidewater’s market price exceeds 125% of the conversion price.

The offering was underwritten by a syndicate led by National Bank Financial Inc. and included ATB Securities Inc., CIBC World Markets Inc., BMO Nesbitt Burns Inc., Acumen Capital Finance Partners Limited, RBC Dominion Securities Inc., Scotia Capital Inc., Stifel Nicolaus Canada Inc., and iA Private Wealth Inc. The underwriters collectively received a 4.00% fee, totaling $3.48 million. Tidewater netted approximately $83.52 million before expenses, with a potential increase to $96 million if the over-allotment option is fully exercised.

Legal counsel for the deal included Torys LLP for Tidewater and Burnet, Duckworth & Palmer LLP for the underwriters. The Toronto Stock Exchange conditionally approved the listing of the debentures and the underlying common shares, contingent on Tidewater fulfilling all requirements by August 28, 2024.