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Tengasco exchanges all series B, series C convertible preferreds
By Sheri Kasprzak
New York, Aug. 24 - Tengasco, Inc. said it has exchanged all of its outstanding series B and series C cumulative convertible preferred stock, totaling $5,113,045.
The company offered the holders of its preferreds four options for the exchange.
The holders could exchange the series B and C shares for a cash amount equal to 66.67% of the face value of the preferreds plus dividends and interest. The holders of 54.3% of the preferreds - with a value of $2,721,140 of the outstanding series B and C preferreds - chose this option and exchanged their shares for cash totaling $1,814,184.
The remaining holders, with a total value of $2,391,905 in preferreds, chose to exchange their preferreds for common shares. Each preferred was exchangeable for four common shares. The company issued a total of 9,567,620 shares for the preferreds.
None of the investors chose the third or fourth options - to exchange the series B and series C preferreds for up to 12 unit interest in a program to drill 12 oil wells in Kansas or make no exchange at all.
The company paid for the cash portion of the exchange offer with a loan from Dolphin Offshore Partners, LP. The loan bears interest at 12% annually and matures on Dec. 31, 2005.
Based in Knoxville, Tenn., Tengasco is an oil and natural gas exploration company. The company's stock closed unchanged at $0.24 Wednesday.
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