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Norse Energy makes two-part conversion offer for NEC02 bonds
By Jennifer Chiou
New York, Jan. 26 - Norse Energy Corp. ASA announced that it has entered into an agreement with funds managed by Pioneer Investment Management, Inc. to convert $12,455,050 nominal value of NEC02 convertible bonds into Norse shares in a two-part transaction.
Initially, the Pioneer funds will subscribe for 21,195,456 new Norse ordinary shares at a subscription price of NOK 0.37 each in exchange for $1,331,463 of the bonds. Norse added that it will pay accrued interest to the funds.
According to a news release, the new shares have nominal value of NOK 0.36883488 per share.
In the second part, the Pioneer funds will exchange the remaining $11,123,587 for new Norse shares, also at NOK 0.37 per share, which represents a 48% premium to the closing price for the company's stock on the Oslo Stock Exchange on Jan. 25.
"Through this transaction with the Pioneer funds and other deals as previously announced, Norse has reduced its debt by approximately $37 million since the middle of 2011 through asset sales and issuance of equity above the market price," Norse chief executive officer Mark Dice said in the release.
Offer to other holders
Norse is also asking holders to tender their securities for new shares at the same subscription price of NOK 0.37 per share or higher.
The company said that this offer is limited to 297,260,031 shares, which is the remaining amount available under the power of attorney granted to the board of directors at a meeting on Nov. 22.
Settlement is anticipated on Feb. 6.
Questions may be directed to Pareto Securities AS at 47 2287 8770.
Norse Energy is an oil and gas exploration and production company based in Oslo.
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