Petrobank holders agree to convert 85% of $149.3 million notes early

By Jennifer Chiou

New York, April 12 - Petrobank Energy and Resources Ltd. announced an early conversion period for its remaining $149.3 million of 5.125% convertible notes due July 10, 2015, adding that holders of $127.1 million, or 85%, of those notes have agreed to convert their securities.

The early conversion period will end at 2 p.m. ET on Tuesday.

During a prior early conversion period that ended on Jan. 8, holders of $250.7 million, or 63%, of the then $400 million of notes had agreed to convert their securities.

In the current conversion period, holders are entitled to receive up to 3,920,457 common shares of Petrobank as well as cash of $18,000 per $100,000 principal amount of notes.

ABG Sundal Collier Norge ASA was the manager.

Together with the previously converted notes, 94% of the notes originally issued has now been converted.

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 $56.98 on Monday.

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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