Enseco Energy agrees to amend, replace 10% convertibles with new notes

By Jennifer Chiou

New York, Dec. 5 - Enseco Energy Services Corp. announced that its board agreed to amend or replace its $7.22 million of 10% convertible debentures with a new amended or replacement debenture.

The replacement security will satisfy Enseco's obligation to repay the current debentures on maturity, a news release said.

The 10% debentures were issued in three tranches and mature on Dec. 4, Dec. 15 and Jan. 2, respectively.

The new zero-coupon debentures are expected to have a three-year term and will be convertible, at the option of the holder, into common shares at the rate of $3.50 per share, except that the conversion rate will decline by $0.07 per month for every month that the new debentures are issued and outstanding.

Upon maturity, the new zero-coupon debentures will automatically be converted into common shares.

Enseco said it anticipates finalizing the terms of the new debentures on or before Jan. 10.

With corporate offices located in Calgary, Alta., Enseco is supplier of energy related services operating throughout the Western Canadian Sedimentary Basin.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.