Journey Energy offering to raise C$198 mln

TORONTO, June 13 Fri Jun 13, 2014 3:21pm EDT

TORONTO, June 13 (Reuters) - Canadian exploration and production company Journey Energy Inc said on Friday it plans to raise C$198 million ($182 million) via an initial public offering and secondary offering on the Toronto Stock Exchange.

The offering of 16.5 million shares, which priced at C$12 a share, is being underwritten and led by BMO Nesbitt Burns and CIBC World Markets Inc.

The Calgary, Alberta-based company is selling 14 million shares from its treasury, while its principal shareholder PSP Investments - a large Canadian pension fund manager - is selling 2.5 million shares that it controls. PSP will continue to retain a stake of about 30 percent in the company following the close of the offer.

The company expects to receive net proceeds of about C$157 million from the initial public offering, along with about C$10 million in proceeds from a separate private placement offering.

The company plans to use the proceeds to pay down some of its outstanding debt.

($1 = 1.0857 Canadian Dollars) (Reporting by Euan Rocha; Editing by Chizu Nomiyama)

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