* To sell 27.2 mln shares at C$5.15 per share
* To use proceeds to reduce debt
June 4 (Reuters) - Canada's Trinidad Drilling Ltd TDG.TO said it plans to sell 27.2 million shares at C$5.15 apiece for gross proceeds of about C$140 million ($127.9 million).
If the over-allotment option is exercised in full, the gross proceeds will be about C$150 million, the company said, adding that the net proceeds from the offering will be used to reduce debt.
The company said it entered into an agreement with a syndicate of underwriters led by Raymond James Ltd related to the bought deal equity financing.
The offer price represents a discount of about 10 percent to the stock's Thursday closing price of C$5.70 on the Toronto Stock Exchange.
The offering is expected to close on or about June 25, the company said in a statement. ($1=1.095 Canadian Dollar) (Reporting by Ashutosh Joshi in Bangalore; Editing by Deepak Kannan)