By Rebecca Melvin
New York, June 1 - Petrominerales Ltd. priced $400 million of five-year convertible bonds Friday at par to yield 3.25% with an initial conversion premium of 35%, according to a news release.
The bonds priced near the middle of price talk, which was for a coupon of 2.875% to 3.625% and a 32.5% to 37.5% premium above the Thursday closing price of its shares on the Toronto Stock Exchange.
Petrominerales also tendered for $250 million of its existing 2.625% convertibles due 2016 from offshore holders. The modified Dutch auction for the existing bonds was at a purchase price of 98.5, which was at the mid-point of talk. Left outstanding of the issue is $271.8 million principal with a potential early redemption option in August 2013.
ABG Sundal Collier Norge ASA was the manager of the offering and the tender offer.
Petrominerales also repurchased 10 million shares, or 10% of its shares outstanding, at Thursday's closing price of C$13.80 per share, which was above the 5 million and 7 million of shares that it expected to buy back.
Proceeds are aimed at extending the company's debt maturity profile, minimizing dilution and securing inexpensive working capital. In addition, proceeds will be used to fund oil and gas exploration and development in Latin America.
The new convertibles were expected to settle June 12.
Bogota, Colombia-based Petrominerales is an oil exploration and production company.
| Issuer: | Petrominerales Ltd.
|
| Issue: | Convertible bonds
|
| Amount: | $400 million
|
| Maturity: | June 2017
|
| Bookrunner: | ABG Sundal Collier Norge ASA
|
| Coupon: | 3.25%
|
| Price: | Par
|
| Yield: | 3.25%
|
| Conversion premium: | 35%
|
| Conversion price: | $18.0017
|
| Price talk: | 2.875%-3.625%, up 32.5%-37.5%
|
| Distribution: | Rule 144A, Regulation S category 1
|
| Pricing date: | June 1
|
| Settlement date: | June 12
|
| Stock symbol: | Toronto: PMG
|
| Stock reference price: | C$13.80
|
| Market capitalization: | C$1.3 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
