Warren Resources calls 12% convertibles

New York, Oct. 3 - Warren Resources said it will redeem its 12% secured convertible bonds due Dec. 31, 2009, 12% secured convertible bonds due Dec. 31, 2010 and 12% secured convertible bonds due Dec. 31, 2016, on Dec. 5

The New York-based independent energy company will pay 110% of par plus accrued interest.

By redeeming the bonds, Warren will cut its debt by $3.7 million, the company said. The redemption will release $2.8 million of Treasuries being held in escrow to secure repayment of the bonds.

Warren's remaining $2.6 million of bonds are secured at maturity by matching zero-coupon Treasury securities having a fair market value of $1.3 million.

Up to the close of business on Dec. 5, holders can convert the bonds into stock at a price of $9.00 per share. Warren stock closed at $17.35 on Monday.

Warren noted that after the redemption is complete it will have reduced its debt to $2.6 million from $46.5 million during 2005.

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