By Devika Patel
Knoxville, Tenn., Dec. 21 - Victoria Oil & Gas plc said it will raise £20 million in a private placement of shares and $10 million in an offering of convertible loan notes.
The company will sell ordinary shares at 15p apiece. Of those shares, 101,666,667, or £15.25 million, will be bought by private investors. Another 6,666,667 shares will be bought by HJ Resources Ltd.
The loan notes will mature in 2012. SPV will buy $2 million on completion of the company's repayment and conversion of its outstanding £18.75 million secured convertible bonds due 2009. It will buy $8 million more of the notes upon ratification of the extension of the company's West Medvezhye license.
The notes will carry a 2.5% interest rate per annum, payable semiannually, and may be converted into ordinary shares at any time at 16.5p per share.
The notes may be redeemed in all or in part by the SPV on Dec. 31, 2010, converted at any time or redeemed at maturity on Dec. 31, 2012. If the notes are redeemed at maturity, the interest rate will be adjusted to a fixed rate of 6.5% on a compound basis.
Proceeds will be used to finance the company's current working capital requirement, its ongoing development operations at its West Medvezhye gas and gas condensate exploration project in Russia and the Kemerkol oil field in Kazakhstan and to redeem some of its outstanding bonds.
Victoria, based in London, is an oil and natural gas exploration company.
Shares
| Issuer: | Victoria Oil & Gas plc
|
| Issue: | Ordinary shares
|
| Amount: | £20 million
|
| Price: | 15p
|
| Investor: | HJ Resources Ltd. (for 6,666,667 shares)
|
| Pricing date: | Dec. 21
|
| Stock symbol: | London: VOG
|
| Stock price: | 13.75p at close on Dec. 21
|
|
|
| Convertible loan notes
|
| Issuer: | Victoria Oil & Gas plc
|
| Issue: | Convertible loan notes
|
| Amount: | $10 million
|
| Price: | Par
|
| Maturity: | Dec. 31, 2012
|
| Coupon: | 2.5%
|
| Conversion price: | 16.5p
|
| Investor: | SPV
|
| Pricing date: | Dec. 21
|
| Stock symbol: | London: VOG
|
| Stock price: | 13.75p at close on Dec. 21
|
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