New Issue: Petrominerales prices $80 million 3.375% convertibles, up 38%; $20 million greenshoe exercised

By Evan Weinberger

New York, Nov. 27 - Petrominerales Ltd. priced $80 million in convertible notes due December 2010 with a 3.375% coupon and a 38% initial conversion premium Monday after market close in Toronto.

The $20 million greenshoe was also exercised, raising the total to $100 million.

The convertibles came in near the rich end of coupon talk, which had been 3.25% to 4%, and at the rich end of conversion premium talk, which had been 32% to 38%.

ABG Sundal Collier Norge ASA is the bookrunner of the Regulation S transaction.

The settlement date is expected to be Dec. 6.

The conversion price is $27.3485.

The convertibles will be callable after two years subject to a 130% hurdle.

Petrominerales is a Bogota, Colombia-based oil and gas drilling company with operations in western Colombia. Petrobank Energy and Resources Ltd. owns 76.6% of Petrominerales.

The company plans to use the proceeds for general corporate purposes, including the expansion and acceleration of Petrominerales's drilling, seismic and development plans.

Issuer: Petrominerales Ltd.

Issue: Convertible notes

Amount: $80 million

Greenshoe: $20 million, exercised

Maturity: December 2010

Coupon: 3.375%

Price: Par

Yield: 3.375%

Conversion premium: 38%

Conversion price: $27.3485

Call: After two years subject to 130% hurdle

Bookrunner: ABG Sundal Collier Norge ASA

Distribution: Regulation S

Pricing date: Nov. 26, after close

Settlement date: Dec. 6

Talk: 3.25%-4% coupon; 32%-38% initial conversion premium

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