AED Oil receives tenders for $43.49 million of 6.5% convertibles

By Angela McDaniels

Tacoma, Wash., Sept. 14 - AED Oil Ltd. said holders tendered $43,491,000 principal amount of its $71 million outstanding principal amount of 6.5% convertible unsecured notes due 2012 during a tender offer that expired on Sept. 10.

Holders were invited to exchange all or some of their convertibles for:

• A combination of 50% cash and 50% new AED shares; or

• A combination of 50% cash and 50% new 9% convertible unsecured notes due July 2012.

The company will also pay accrued interest.

Of the principal amount tendered, $1,056,000 is being exchanged for cash and shares and $42,435,000 is being exchanged for cash and notes.

In total, the company will issue 911,740 shares and $21,217,500 principal amount of new convertibles and pay $21,745,500 in cash.

The price per share is A$0.67276, and the exchange rate is 0.8608 of a U.S. dollar per Australian dollar.

The offer began on Aug. 28, and the expiration date was previously extended from Sept. 4.

Following settlement of the offer on Sept. 15, $27,509,000 principal amount of notes will remain outstanding.

Barclays Bank plc (+65 6308 3175 or +44 20 7773 8300) was the dealer manager, and Bank of New York Mellon, London Branch was the exchange agent.

The issuer is a Melbourne, Australia-based oil company.

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