JED Oil once more amends agreement with holders of 10% convertibles

By Devika Patel

Knoxville, Tenn., June 4 - JED Oil Inc. said it negotiated another note amending agreement with holders of its $40.24 million of 10% senior subordinated convertible notes.

Under the new agreement, JED Oil has until June 30 to complete the previously announced $32 million credit facility offered by a Canadian Chartered Bank.

The company needs the facility to repay 61% of the notes, along with fees and interest from Jan. 1 up to the closing date. The remaining 39% in notes will remain outstanding as amended and restated notes.

These amended notes will pay 12% interest, payable in common stock if required by the company's bank, and will mature in one year.

The company may prepay the notes without penalty. In addition, JED must make prepayments equal to half of the net proceeds it receives from asset sales after repaying the bank the loan value of the assets.

The amended notes may be converted at the holders' option into common shares at a conversion price of $1.25 per share.

JED Oil is an oil and natural gas company that is based in Didsbury, Alta.

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