Toscana Energy seeks to extend maturity of 6.75% convertibles

New York, March 29 – Toscana Energy Income Corp. began a consent solicitation in which it is seeking to extend the maturity of its 6.75% convertible unsecured subordinated debentures due June 30, 2018 and to make other changes, according to a news release.

The company wants approval to push out the maturity to June 30, 2021 from June 30, 2018.

Alongside this change it is seeking to increase the interest rate to 7.25% from 6.75%, effective June 30, to reduce the conversion price to C$1.00 per share from C$19.70 per share and to add a call provision starting at 103 from June 30, 2018, falling to 102 on June 30, 2019 and par on June 30, 2020.

A meeting of debenture holders to approve the changes will be held on April 23.

The company needs a quorum of at least 25% of the debentures and approval from at least 66 2/3% of those present at the meeting.

Changes related to the conversion price must be approved by a majority of the holders of the company’s common shares.

Toscana said it is seeking to make the changes to allow it to defer repayment of the principal amount to a time when commodity markets may have improved.

Toscana is a Calgary, Alta., oil and gas producer.

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