By Sheri Kasprzak
New York, Sept. 6 - Transmeridian Exploration Inc. said it has completed a private placement of convertible notes for $22.5 million.
The company sold the 10% notes to North Sound Legacy Institutional Fund LLC, North Sound Legacy International, Ltd. and Royal Bank of Canada.
The notes mature the earlier of Dec. 15, 2005 or upon the closing of an equity financing other than a public offering.
The notes are convertible into common shares at 110% of the principal being converted, plus interest, at the equity financing price.
The investors also received warrants for 4.5 million shares, exercisable at $2.40 each for five years.
The proceeds will be used to repay past due and current accounts under credit facilities for the company and its subsidiaries. The remainder will be used for working capital and other general corporate purposes.
Based in Houston, Transmeridian is an oil and natural gas exploration company.
| Issuer: | Transmeridian Exploration Inc.
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| Issue: | Convertible notes
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| Amount: | $22.5 million
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| Maturity: | Dec. 15, 2005
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| Coupon: | 10%
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| Price: | Par
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| Yield: | 10%
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| Conversion price: | Equal to 110% of the principal being converted plus interest at future equity financing price
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| Warrants: | For 4.5 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.40
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| Investors: | North Sound Legacy Institutional Fund LLC, North Sound Legacy International, Ltd. and Royal Bank of Canada
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| Settlement date: | Aug. 30
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| Stock price: | $2.44 at close Aug. 30
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