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Perpetual swaps C$62.5 million more 8¾% notes for Tourmaline shares
By Susanna Moon
Chicago, May 26 – Perpetual Energy Inc. said it has exchanged another C$62.5 million principal amount of its 8¾% senior notes due March 15, 2018 and 8¾% senior notes due July 23, 2019 for some Tourmaline Oil Corp. shares owned by Perpetual.
The exchange was made at a rate of 21 Tourmaline shares for each C$1,000 principal amount of the 2018 notes and 20 Tourmaline shares per C$1,000 of 2019 notes.
Specifically, the company swapped C$35.4 million of the 2018 notes and C$27.2 million of the 2019 notes for 1,286,006 Tourmaline shares owned by Perpetual, according to a company announcement.
Under the securities swap announced April 13, Perpetual offered to exchange between C$75 million and C$150 million principal amount of the senior notes for 1.58 million to 3.15 million Tourmaline shares.
The company also offered to pay accrued interest.
Perpetual said it exchanged C$152 million of notes under the proposals on April 27 and May 10, bringing the total swap amount to C$214.4 million notes for 4.402 million Tourmaline shares owned by Perpetual. The amount exchanged consists of C$114.1 million 2018 notes and C$100.3 million 2019 notes. The notes tendered under the swap proposal were subsequently canceled.
After the exchanges, the outstanding amount is C$36.1 million for 2018 notes and C$24.5 million for the 2019 notes.
“Perpetual remains focused on strengthening its balance sheet, managing liquidity and restoring positive funds flow as top priorities in the current depressed commodity price environment,” the company said in the news release.
Perpetual Energy is a Calgary, Alta., energy company.
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