Petrobank holders agree to convert 63% of $400 million notes early

By Jennifer Chiou

New York, Jan. 8 - Petrobank Energy and Resources Ltd. announced that holders of $250.7 million, or 63%, of its $400 million of 5.125% convertible notes due July 10, 2015 agreed to convert their securities during the early conversion period that was announced on Thursday and ended at 7 a.m. ET on Friday.

ABG Sundal Collier Norge ASA was the manager.

Petrobank previously said that holders of $84.5 million, or 21%, of the notes had agreed to convert their notes on Thursday.

The conversion price was $38.08. The company said it would issue up to 10,503,567 common shares plus an additional common share consideration, which was to be about 350 shares for each $100,000 principal amount of notes.

Previously, holders had a one-time right on July 10, 2012 to convert their notes at an early conversion price based on the volume-weighted average share price of the stock for 20 consecutive trading days ending five trading days prior to July 10, 2012.

The notes are non-callable for four years and then are provisionally callable if the price of Petrobank common stock exceeds 140% of the notes' conversion price.

The company's stock (Toronto: PBG) closed at $58.28 on Thursday.

The notes were issued on July 10, 2009.

Calgary, Alta.-based Petrobank is an oil and natural gas exploration and production company with operations in western Canada and Latin America. Questions may be directed to 403 750-4400.

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