Encana and Prairiesky Royalty complete secondary offering

2014 Encana Corporation and PrairieSky Royalty Ltd. completed a secondary offering by Encana of 70,200,000 common shares of PrairieSky at a price of $36.50 per share for total proceeds to Encana of $2.56 billion. As a result of the offering, Encana sold its entire remaining 54 per cent ownership interest in PrairieSky, which it had retained following PrairieSky’s $1.67 billion initial public offering completed on May 29, 2014.

The largest energy bought deal in Canadian history, the offering was co-led and joint bookrun by TD Securities, CIBC, BMO Capital Markets and RBC Capital Markets on behalf of a syndicate of underwriters.

Encana’s in-house legal team on the transaction included Terrence Hopwood, QC, Jeff Paulson and Terence Trinh. Cameron Proctor, Vice-President, Legal & Corporate Services, oversaw legal matters for PrairieSky. Encana and PrairieSky were represented by Blake, Cassels & Graydon LLP with a team that included Chad Schneider, Olga Kary, and Marcus Ostrowerka. Andrew Foley and Emelia Baack of Paul, Weiss, Rifkind, Wharton & Garrison LLP provided US advice to Encana and PrairieSky on the transaction.

The underwriters were represented by Burnet, Duckworth & Palmer LLP, with a team that included Grant Zawalsky, Alyson Goldman, Lindsay Cox and Bronwyn Inkster. Dan Miller of Dorsey & Whitney LLP provided US securities law advice to the underwriters.