Pacific Rubiales sets sweetener to induce conversion of 8% notes

By Angela McDaniels

Tacoma, Wash., Nov. 7 - Pacific Rubiales Energy Corp. will temporarily increase the conversion rate for its C$240 million of 8% convertible subordinated debentures due Aug. 29, 2013, according to a company news release.

The early conversion period will begin Nov. 9 and end at 5 p.m. ET on Nov. 29. Holders who convert during this time will receive 86.5733 common shares per C$1,000 principal amount of convertibles.

The number of shares is equal to (a) the regular conversion rate of 77.9359 shares per C$1,000 principal amount plus (b) an additional number of shares equal to C$200, representing the coupon to maturity and an incentive for converting early, divided by C$23.16, which is the average of the daily volume-weighted average trading price of the company's shares for the seven trading days ended Nov. 4.

RBC Capital Markets is acting as the company's financial adviser. Kingsdale Shareholder Services Inc. (877 659-1821 or 416 867-2272) is the solicitation agent.

Pacific Rubiales is a Toronto-based producer of natural gas and heavy crude oil.

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