Crown Point Energy Argentine subsidiary offers exchange notes

By Mary-Katherine Stinson

Lexington, Ky., Aug. 5 – Crown Point Energy Inc. announced that its Argentine wholly owned subsidiary Crown Point Energia SA is offering new series III secured fixed-rate notes via exchange or alternatively for cash consideration, according to a press release.

Crown Point is offering to exchange series I notes and/or series II notes both due March 2024 to be exchanged for newly issued series III notes of up to $10 million.

The new notes will be denominated in U.S. dollars and payable in pesos with a three-year tenor.

The issue size of the series III notes is set for $10 million, but may increased up to $15.6 million, or the equivalent amount in pesos.

The new notes will be repaid in seven quarterly repayments plus interest beginning 18 months after the issue date.

Currently, there are $2,956,249 series I notes and Ps. 166.25 million ($1,257,755) series II notes outstanding.

The exchange ratio will be determined prior to the issue date of the series III notes.

The offer is expected to close on or around Aug. 8.

The company is issuing the new notes under its Negotiable Obligations Issuance Global Program for up to $75 million or its equivalent in other currencies.

Proceeds from the offering will be used for general corporate purposes and for the development of new assets in Argentina.

The oil and gas exploration and development company is based in Calgary, Alta.

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