Interoil Exploration to hold meeting for 15% callable bonds due 2014

By Susanna Moon

Chicago, April 13 - Interoil Exploration and Production ASA announced a meeting to be held on April 27 for holders of its 15% senior callable bonds due 2014.

The company received a tax refund of about NOK 45 million from a judgment in a tax dispute with Eksportconsult AS and Force Capital Partners AS, which was assigned as security for the bonds and is to be used to call the bonds at a premium of 110% of par, according to a press release.

Interoil would like to retain the funds to improve its working capital and has been in discussions with a group of its largest bondholders to postpone repayment of the tax refund for one year until the interest payment date in March 2013, the release noted.

In return, the company said it agreed to a tighter covenant structure, including no dividends for the duration of the bond, as well as an adjustment of a restriction on oil price hedging, which will now allow for new hedging.

Bondholders are offered NOK 4.5 million in consent fees, and the tax refund will be repaid at 5% premium to par when it is due in March 2013.

Pareto Securities and RS Platou Markets are the financial advisers.

Interoil is an Oslo-based exploration and production company.

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