Harvest Energy tenders for six series of convertibles, senior notes

By Jennifer Chiou

New York, Jan. 20 - Harvest Energy Trust and its wholly owned subsidiary, Harvest Operations Corp., announced offers to purchase all of Harvest's convertible debentures as well as all of Harvest Operations' 7 7/8% senior notes for a cash consideration equal to 101% of the principal amount plus accrued interest.

Affected securities include the:

• 6.5% debentures due 2010 with an offer that expires on March 4;

• 6.4% debentures due 2012 with an offer that expires on Feb. 11;

• 7.25% debentures due 2013 with an offer that expires on March 4;

• 7.25% debentures due 2014 with an offer that expires on Feb. 25;

• 7.5% debentures due 2015 with an offer that expires on Feb. 25; and

• 7 7/8% senior notes due 2011 with an offer that expires on Feb. 16.

Settlement is anticipated on Feb. 19 for the senior notes.

The companies noted that the offers follow completion of the previously announced plan of arrangement involving Korea National Oil Corp., under which KNOC Canada Ltd. acquired all of the issued and outstanding trust units of Harvest. This constituted a change of control.

In other news, Harvest confirmed the board of directors and management of Harvest Operations, which includes Seong-Hoon Kim as chairman, Hong-Guen Im, Chang Koo Kang, John Zahary, Dennis Balderston, William Friley Jr., Richard Harris and William Robertson.

Harvest Energy is an investment trust based in Calgary, Alta., that develops petroleum and natural gas properties.

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