By Sheri Kasprzak
New York, May 31 - Frontera Resources Corp. pocketed another $20.5 million from the second tranche of its previously announced private placement of unsecured convertible notes.
The notes, due May 2012, bear interest at 10% annually and are convertible into common shares at $1.67 each, a 7.5% premium over the company's 78p closing stock price on May 4.
The offering is in addition to the $46.5 million of notes issued on May 8.
Raymond James and Associates was the placement agent for the deal.
Proceeds will be used for development and exploration on the company's projects in Block 12 in the former Soviet state of Georgia.
Houston-based Frontera is an oil and natural gas exploration company.
| Issuer: | Frontera Resources Corp.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | $20.5 million
|
| Maturity: | May 2012
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $1.67
|
| Warrants: | No
|
| Placement agent: | Raymond James and Associates
|
| Settlement date: | May 30
|
| Stock symbol: | London: FRR
|
| Stock price: | 82p at close May 30
|
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