PA Resources board resolves to issue up to SEK 1.16 billion convertibles

By Jennifer Chiou

New York, Dec. 4 - The board of directors of PA Resources AB received authorization after a shareholders' meeting and has resolved to issue up to SEK 1,164,112,032 of 11% convertible bonds due Jan. 15, 2014 with preferential right for existing shareholders.

The meeting took place on Dec. 2. The record date is Dec. 11.

The company said that about 59% of the issue amount is covered either through subscription commitments or guarantees from a consortium of existing shareholders as well as other investors.

Shareholders are offered to subscribe for convertible bonds with preferential right, with each share held entitling the holder to one subscription right.

Two subscription rights are required to subscribe for one convertible bond in a nominal amount of SEK 16.

The last day to trade in PA Resources' shares, including subscription rights, is Dec. 8 while subscription for the convertible bonds can be effected from Dec. 15 to Jan. 2.

Interest will be paid annually on Jan. 15, the first time in January 2010.

On an annual basis until 2013, conversion into new shares may be carried out during September. Assuming full conversion, the number of shares in PA Resources will increase by 72,757,002, corresponding to a dilution of about 33%.

PA Resources is one of the largest oil producers in Tunisia. Its parent company is located in Stockholm, Sweden.

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