Penn West Energy Trust completes tender offers for Vault Energy's 7.2%, 8% convertibles

By Angela McDaniels

Tacoma, Wash., March 5 - Penn West Energy Trust received tenders for C$23.78 million of Vault Energy Trust's 7.2% convertible unsecured subordinated debentures due May 31, 2011 during a tender offer that expired on Wednesday.

The trust also received tenders for C$11,000 of Vault Energy Trust's 8% convertible unsecured subordinated debentures due June 30, 2010.

The offers that began on Jan. 29 were required under the change-of-control provisions in the debenture indentures. Penn West acquired Vault Energy on Jan. 10.

The trust said it will pay 101% of par plus accrued interest for both series of debentures, which equals C$1,028.94 per C$1,000 principal amount of 7.2% convertibles and C$1,024.25 per C$1,000 principal amount of 8% convertibles.

In total, the trust paid C$24.5 million for the convertibles.

According to a trust news release, C$26.22 million of the 7.2% convertibles and C$48.66 million of the 8% convertibles remain outstanding following the tender.

Penn West is an oil and natural gas energy trust based in Calgary, Alta.

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