Petrobank adds early conversion period for $400 million convertibles

By Jennifer Chiou

New York, Jan. 7 - Petrobank Energy and Resources Ltd. announced an early conversion period for its $400 million of 5.125% convertible notes due July 10, 2015.

ABG Sundal Collier Norge ASA is the manager.

Petrobank added that holders of $84.5 million, or 21%, of the notes have already agreed to convert their notes prior to 7 a.m. ET on Friday.

The conversion price is $38.08. As a result, the company will issue up to 10,503,567 common shares plus an additional common share consideration, which will be about 350 shares for each $100,000 principal amount of notes.

Previously, holders had a one-time right on July 10, 2012 to convert their notes at an early conversion price based on the volume-weighted average share price of the stock for 20 consecutive trading days ending five trading days prior to July 10, 2012.

As already reported, the deal was increased from $300 million with the exercise of the $100 million greenshoe.

The notes are non-callable for four years and then are provisionally callable if the price of Petrobank common stock exceeds 140% of the notes' conversion price.

The notes were issued on July 10, 2009.

Calgary, Alta.-based Petrobank is an oil and natural gas exploration and production company with operations in western Canada and Latin America. Questions may be directed to 403 750-4400.

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