By Laura Lutz
Des Moines, Oct. 5 - Dominion Petroleum Ltd. settled its previously announced private placement of convertible loan notes for $45 million, down from the $65 million deal size announced at pricing on July 9.
The series B notes bear interest at 6.25% per year and mature on June 30, 2011.
Holders can convert the notes at 60p per common share. During the first 18 months, the conversion price may be reduced if the company's stock dips below the original conversion price calculated on a volume weighted average price basis during each fiscal quarter provided it is not less than 48p.
A forced conversion means that half of the original issue automatically will be converted if Dominion Petroleum's shares trade above 250% of the conversion price for 15 consecutive trading days.
The remaining half will be converted automatically if, after 60 days following the initial automatic conversion, the shares trade above 250% of the conversion price for 15 consecutive trading days.
Dominion Petroleum is guarantor of the convertibles.
The company also plans to raise additional funds from an equity financing before Dec. 31, according to the release.
After that date, the interest rate on the notes will be adjusted downward. The adjusted rate will be at least 7% and at most 10%.
If the company has not raised at least $5 million from the equity financings, the notes will mature one year earlier.
Proceeds will be used for exploration and for working capital.
Dominion Petroleum is an oil and gas exploration company based in Hamilton, Bermuda.
| Issuer: | Dominion Petroleum Ltd.
|
| Guarantor: | Dominion Petroleum
|
| Issue: | Convertible loan notes
|
| Amount: | $45 million
|
| Maturity: | June 30, 2011
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion price: | 60p
|
| Contingent conversion: | 250%
|
| Announcement date: | July 9
|
| Settlement date: | Oct. 5
|
| Stock symbol: | London: DPL
|
| Stock price: | 54p at close July 6
|
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