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Harvest holders tender for exchange 43.51% of 6 7/8% notes due 2017
By Susanna Moon
Chicago, June 14 – Harvest Operations Corp. said investors had tendered for exchange $217,536,000, or 43.51%, of its $500 million of outstanding 6 7/8% senior notes due 2017.
Harvest expects to accept for exchange all notes tendered in the offer, according to a company notice.
The company said it waived the offer conditions that it receive consents from holders of a majority of the outstanding notes and that it execute a supplemental indenture to the notes.
As announced May 16, Harvest was offering new 2.33% guaranteed notes due 2021 with a guarantee from Korea National Oil Corp. in exchange for the 6 7/8% notes.
Harvest was also soliciting consents to amend the 6 7/8% notes to eliminate some covenants.
For each $1,000 principal amount of the existing notes tendered, holders will receive $900 of the new notes.
The early deadline was revised to 11:59 p.m. ET on June 13, the offer expiration, from 5 p.m. ET on May 27 to encourage more holders to tender their notes, according to a company update on May 31.
The amount on offer included an early tender premium of $30 per $1,000. Because the early tender deadline was extended to the same time as the offer expiration, all holders who tendered in the offer will receive this premium.
In addition to issuing new notes, Harvest will also pay accrued interest up to but excluding the settlement date in cash.
Settlement was expected to occur within three days of the offer expiration.
The offer was 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 the exchange and information agent.
Harvest Operations, based in Calgary, Alta., is an oil and natural gas exploration and production company that also has an oil sands project under construction. It is a subsidiary of Korea National Oil, a state-owned oil and gas company.
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