Addax Petroleum Corporation ("Addax Petroleum" or the "Corporation") (TSX: AXC - News), an international oil and gas exploration and production company with a strategic focus on West Africa and the Middle East, today announces the pricing of its private placement of US$300 million in principal amount of Convertible Notes due in 2012 (the "Notes"). This amount includes an overallotment option (in respect of up to US$25 million in principal amount of Notes) that the Corporation has granted to Citigroup Global Markets Limited and UBS Limited, the joint lead underwriters of the offering, which option can be exercised until May 25th, 2007.
Commenting today, Addax Petroleum's President and Chief Executive Officer, Jean Claude Gandur, said: "I am delighted that this financing initiative has been well received in the market. We look forward to deploying the funds to continue the growth of Addax Petroleum for the benefit of our shareholders."
The Notes to be issued by the Corporation will be convertible into Common Shares of the Corporation and will have a fixed annual coupon of 3. 75 per cent and an initial conversion price of CDN$56.0612 per share ( converted into US$ at a fixed rate of US$1 = CDN$1.108), representing a premium of 40 per cent to the US$-equivalent of the Corporation's volume- weighted average share price during the marketing period of the Notes. The Notes will be issued at 100 per cent of their principal amount and, unless previously redeemed, converted, or purchased and cancelled, will mature in 2012. After 3 years and 21 days, the Notes will be callable at the option of the Corporation, so long as the Corporation's share price is at least 130 per cent of the conversion price.
The Notes will include a Net Share Settlement option, allowing the Corporation to settle investor conversions by repaying the par value of the Notes in cash, and delivering only the difference between the value of the underlying shares and the par value in shares. In doing so, Addax Petroleum has the option to reduce the potential dilutive effect of the instrument.
The net proceeds of the issue will be used for the Corporation's general corporate purposes.
The Notes are expected to be issued on or around May 30th, 2007. An application will be made for the Notes to be admitted to listing and to trading on the Professional Securities Market of the London Stock Exchange. The Corporation's Common Shares are listed and traded on the Toronto Stock Exchange (the "TSX").
There will be no public offering of the Notes which will be offered solely on a private placement basis in denominations of US$200,000. The issuance of the Notes is subject to regulatory approval including by the TSX.
Source : biz.yahoo.com
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