Penn West begins change-of-control tender offers for Vault Energy's 7.2%, 8% convertibles

By Angela McDaniels

Tacoma, Wash., Jan. 29 - Penn West Energy Trust began cash offers on Tuesday to purchase all of Vault Energy Trust's outstanding 7.2% convertible unsecured subordinated debentures due May 31, 2011 and 8% convertible unsecured subordinated debentures due June 30, 2010.

The offers are required under the change-of-control provisions in the debenture indentures. Penn West acquired Vault Energy on Jan. 10.

The company said it will pay 101% of par plus accrued interest for both series of debentures.

The offers will expire at 2 p.m. ET on March 5, according to a company news release.

Holders of the 7.2% debentures who wish to tender must make their election through their broker or account representative, and holders of the 8% debentures who wish to participate must deliver tenders to Valiant Trust Co., the depositary for the 8% offer.

Penn West is an oil and natural gas energy trust based in Calgary, Alta.

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