Pioneer Natural Resources holders convert all 4.75% convertibles ahead of redemption

By Jennifer Chiou

New York, Dec. 20 - Pioneer Natural Resources Co. announced that holders of all $27 million of its 4.75% convertible notes due 2012 converted their securities prior to redemption on Dec. 20.

As a result, the company paid $21.6 million in cash and issued 0.6 million shares.

The redemption was announced on Nov. 15, when the company said it would redeem the notes at par plus accrued interest up to but excluding the redemption date.

The Dallas-based oil and gas exploration and production company had said that noteholders could convert their securities until the close of business on Dec. 18. Each $25.00 principal amount of notes is convertible into $19.98 in cash and 0.58175 of a Pioneer share.

As previously announced, since June 30, $71 million of the notes have been converted into 1.7 million shares. The company paid $55 million in cash.

The company assumed the notes from Evergreen Resources Inc., which became a wholly owned subsidiary of Pioneer in September 2004. Pioneer announced plans for the redemption on Oct. 4.

U.S. Bancorp is the trustee and paying agent (713 235-9208).

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