Pacific Rubiales gives update in exchange offer for 7¼% notes due 2021

By Susanna Moon

Chicago, Oct. 6 – Pacific Rubiales Energy Corp. said investors had tendered for exchange $316.2 million, or 31.24%, of its 7¼% senior notes due 2021 by the early exchange period, which ended at 5 p.m. ET on Oct. 2.

As previously announced, the company is offering to issue new 5 5/8% senior notes due 2025 in exchange for tendered 7¼% notes.

The early tendered notes will be settled on Oct. 6, with the issue of about $357.7 million new notes, according to a company press release.

The exchange offer will continue until 11:59 p.m. ET on Oct. 17. The offer began on Sept. 19.

Tendered notes may no longer be withdrawn as of the early exchange deadline.

The total exchange payment is $1,131.25 for each $1,000 principal amount of notes.

The total payment includes a $30.00 early participation payment per $1,000 of notes.

Those who tender their notes for exchange after the early deadline will receive the total payment less the early premium.

Holders will also receive accrued interest.

Global Bondholder Services Corp. (866 807-2200) is the information and exchange agent.

The purpose of the exchange offer is to improve the maturity profile of the company’s existing debt, while reducing interest expense, the company previously said.

Pacific Rubiales, a Toronto-based producer of natural gas and crude oil, owns 100% of Meta Petroleum Corp., which operates the Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and 100% of Pacific Stratus Energy Colombia Corp., which operates the La Creciente natural gas field in the northwestern area of Colombia.

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