Harvest Operations offers new guaranteed 2.33% notes for 6 7/8% notes

New York, May 16 – Harvest Operations Corp. announced that it is offering new 2.33% guaranteed notes due 2021 with a guarantee from Korea National Oil Corp. in exchange for its $500 million of outstanding 6 7/8% senior notes due 2017.

Harvest is also soliciting consents to amend the 6 7/8% notes in order to eliminate some covenants.

For each $1,000 principal amount of the existing notes tendered by the early deadline of 5 p.m. ET on May 27, holders will receive $900 of the new notes.

The amount includes an early tender premium of $30 per $1,000 that will only be paid to those who submit their notes for exchange by the early deadline. After that time, the payment will be $870 of new notes per $1,000.

The exchange ends at 11:59 p.m. ET on June 13.

Completion of the offer is subject to conditions, including that consents to the indenture amendment are received from holders of a majority of the existing notes.

Harvest Operations said that a holder owning 41% of the existing notes has agreed to tender those notes and deliver consents.

Settlement is expected within three days of the expiration of the offer.

In addition to issuing new notes, Harvest will also pay accrued interest up to but excluding the settlement date in cash.

The offer is being conducted under Rule 144A and Regulation S.

D.F. King & Co., Inc. (877 732-3619, 212 269-5550 or e-mail at harvest@dfking.com) is exchange and information agent.

Harvest Operations, based in Calgary, Alta., is an oil and natural gas exploration and production company which also has an oil sands project under construction. It is a subsidiary of Korea National Oil, a state-owned oil and gas company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.