Paramount amends convertibles due 2011, cancels changes to 2010 issue

New York, Dec. 7 - Paramount Energy Trust said it obtained the consents needed from holders of its 6.25% convertible debentures due 2011 to amend the securities at a meeting held Monday.

The trust also received the necessary votes to amend its 6.25% convertible debentures due 2010 but canceled the meeting before it was held.

At its previous announcement on Nov. 23 Paramount had sweetened the offer, raising the coupon and lowering the conversion price among other changes.

As modified and now approved by holders, the coupon will be 7.25% instead of the current 6.25% and the conversion price will be C$7.50 instead of the current C$19.35 and C$23.80. Previously in the offer, Paramount had been proposing a new coupon of 6.75% and a conversion price of C$8.40.

In addition, the company is proposing a maturity date of Jan. 31, 2015 instead of Oct. 31, 2016 and three years of call protection to Jan. 31, 2013, reduced from Oct. 31, 2013.

When it announced the changes to the offer, Paramount also pushed back the bondholder meeting date to Dec. 7 from Dec. 2.

At its previous announcement on Nov. 16, Paramount adjourned the meeting to Dec. 2 from Nov. 13.

The company was seeking approval from holders of its 6.25% convertible unsecured subordinated debentures due June 30, 2010 and its 6.25% convertible unsecured subordinated debentures due April 30, 2011 to change some of the terms of the convertibles. It subsequently canceled the meeting for the 2010 debentures.

As originally announced, the company was seeking to:

• Increase the coupon of the convertibles to 6.75%;

• Reduce the conversion price to C$8.40;

• Provide a four-year non-call provision until Oct. 31, 2013; and

• Extend the maturity date to Oct. 31, 2016.

All other terms of the debentures will remain unchanged.

The conversion prices are currently C$19.35 and C$23.80 per unit for the 2010 debentures and 2011 convertibles, respectively.

The company needed authorization from holders of at least two-thirds of the convertibles.

Questions about voting procedures can be directed to Kingsdale Shareholder Services Inc. (888 518-1558).

Paramount Energy is a natural gas-focused energy trust based in Calgary, Alta.

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