Magnetar Capital to invest $200 mln in Painted Pony Energy

U.S. hedge fund manager Magnetar Capital has agreed to invest $200 million in Painted Pony Energy Ltd (TSX: PONY), a Calgary-based natural gas producer. The investment will consist of $150 million of senior unsecured notes and $50 million of subordinated convertible debentures. Painted Pony said it will use the proceeds to repay debt and for other priorities. Earlier this year, the company acquired natural gas assets operator UGR Blair Creek Ltd. As a result of the $277 million deal, UGR's private equity investors ARC Financial Corp and EnCap Investments each took a 12.38 percent interest in Painted Pony.

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