JED Oil amends agreement with holders of 10% convertibles

By Devika Patel

Knoxville, Tenn., March 27 - JED Oil Inc. said it has negotiated a note amending agreement with holders of its $40.24 million of 10% senior subordinated convertible notes.

Under the new agreement, JED Oil has until May 15 to complete the $32 million credit facility it needs to repay 70% of the notes, along with fees and interest up to the closing date.

The remaining 30% of the notes will not be redeemed. Instead, they will remain outstanding under amended terms.

The amended one-year notes will carry a 12% coupon, payable quarterly, and will be convertible into common shares at $1.25 per share.

JED Oil will have the right to make prepayments at any time without penalty and will be required to make prepayments of half of the net value of proceeds from asset sales after the bank has been repaid the loan value of the assets.

The company said it needed the recent 24-hour extensions of the notes' maturity date in order to draw up this agreement. As previously reported, the JED Oil extended the notes' original Feb. 15 maturity date six times.

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

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