PrairieSky Royalty Ltd. (TSX:PSK) entered into a definitive agreement to acquire Western Canadian Royalty Assets of Heritage Royalty for approximately CAD 730 million on November 29, 2021. The aggregate price shall be CAD 728 million allocated as Proprietary Seismic Data CAD 23 million, Miscellaneous Interests CAD 1.00 and Fee Simple Lands and Acquired Royalty Interests CAD 704.999 million . The Acquisition will be funded through a new CAD 500 million term loan provided by TD Securities Inc., and a concurrent CAD 200 million bought deal equity financing led by TD Securities Inc. and RBC Capital Markets as joint bookrunners and co-led by CIBC Capital Markets and BMO Capital Markets on behalf of a syndicate of underwriters.

PrairieSky has entered into an approximate CAD 200 million bought deal equity financing whereby a syndicate of underwriters led by TD Securities Inc. and RBC Capital Markets as joint bookrunners and co-led by CIBC Capital Markets and BMO Capital Markets have agreed to purchase 14,930,000 million common shares of the Company at a price of CAD 13.40 per Common Share. If the over-allotment option is exercised in full, the Company will receive aggregate gross proceeds of approximately CAD 230 million. The Acquisition is subject to applicable regulatory approvals and satisfaction of certain other closing conditions customary in transactions of this nature, including approval under the Competition Act (Canada).

The Acquisition is expected to close in December 2021, with an effective date of December 31, 2021. Immediately accretive to funds from operations per share and expected to be approximately 17% accretive to funds from operations per share in 2022. BMO Nesbitt Burns Inc. is the financial advisor to Heritage Resource LP.