By Sheri Kasprzak
New York, June 2 - Jed Oil Inc. pocketed $34,325,000 from a private placement of 10% senior subordinated convertible notes. The offering is the first tranche in a $50 million offering.
The notes mature on Feb. 1, 2008 and are convertible into common shares at $16.00 each.
The company issued similar notes in principal of $20 million in August 2003 and connected to the most recent placement, the terms of those notes were amended to be identical to the current notes.
The company expects that a substantial portion of the 2003 notes will be converted into series B convertible preferred stock.
Separately, Jed Oil intends to raise $15,675,000 in a convertible preferreds offering slated to close next week. The terms of the preferreds are not available.
Proceeds from the notes will be used for the reduction of a senior credit facility and for the company's 2006 drilling program.
Calgary, Alta.-based Jed is an oil and natural gas exploration company.
| Issuer: | Jed Oil Inc.
|
| Issue: | Senior subordinated convertible notes
|
| Amount: | $34,325,000
|
| Maturity: | Feb. 1, 2008
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $16.00
|
| Warrants: | No
|
| Settlement date: | June 2
|
| Stock symbol: | Amex: JDO
|
| Stock price: | $14.52 at close June 1
|
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