Petrolia to buy back 12% bonds in three parts, offer aimed at no votes

By Susanna Moon

Chicago, June 29 - Petrolia Drilling ASA said it will offer to buy back its NOK 344.5 million of outstanding 12% bonds due June 2015 in three equal parts over the next three years.

The price will be 99, reflecting the 1% extension fee that bondholders received and that the offer is directed at the minority of holders who voted again extending the maturity of the bonds by three years, according to a company press release.

The buyback will occur in three stages, the first of which will begin as soon as the agreement becomes effective and the final two buybacks scheduled for June 20, 2013 and June 20, 2014.

As previously reported, the company received the bondholder approval needed at the meeting on June 7 to extend the 12% bonds due June 2012 by three years to June 19, 2015.

Of the votes cast, 72.6% were in favor of the proposal. The company will pay a fee of 1% of par, according to a previous notice by trustee Norsk Tillitsmann ASA.

Petrolia also proposed to change the denomination of the bonds to NOK 1 from NOK 500,000 in order to increase the liquidity of the bonds. It originally issued NOK 500 million of the bonds.

Oslo-based Petrolia Drilling owns and charters drilling vessels for offshore, deepwater oil and gas exploration and development.

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