Cnooc calls its $270.15 million zero-coupon convertibles

By Susanna Moon

Chicago, Jan. 22 - Cnooc Ltd. said it would redeem its outstanding zero-coupon guaranteed convertible bonds due 2009.

The principal amount of the bonds outstanding was $270,151,000, or 27% of the amount issued.

Cnooc said it would pay $1,032.27 per $1,000 principal amount of the bonds on the redemption date of Feb. 21. The convertibles will stop trading 3 a.m. ET on Feb. 13.

All conversion notices must be lodged in duplicate with the principal agent by 10 a.m. ET on Feb. 12.

The conversion price is HK$5.79 per share, which was lowered from HK$5.90 effective June 7, 2007, according to a 6-K filing with the Securities and Exchange Commission.

The company's stock (Hong Kong: 0883) closed at HK$11.06 per share on Jan. 21.

Cnooc Finance (2004) Ltd., a wholly owned subsidiary, issued $1 billion of the bonds on Dec. 15, 2004.

Under terms of the issue, the bonds may be redeemed in whole or in part if the stock price is at least 130% of the early redemption amount divided by the conversion ratio for any 20 out of 30 consecutive trading days.

The principal agent is the Bank of New York.

Cnooc is a Hong Kong-based oil and gas exploration and production company.

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