Zenith Energy wraps bond exchange offer, extends maturity of new notes

By Mary-Katherine Stinson

Lexington, Ky., April 11 – Zenith Energy Ltd. concluded its Regulation S exchange offer first announced on Jan. 25, according to multiple notices.

The releases reported that the exchange has now been implemented, and the new notes have settled in the accounts of the noteholders who have accepted the terms of the exchange.

Accrued interest has also been paid.

At the request of exchange agent, Bank of New York Mellon, it was decided to amend the ISIN numbers for the new notes originally proposed, as well as extending the maturity date.

The following existing notes were exchanged, at an exchange ratio of 1 to 1:

• €1,542,000 of 10 1/8% euro-denominated notes due Jan. 27, 2024 (ISIN: XS2108546735)14 5/8% were exchanged for 14 5/8% euro-denominated notes due on March 26, 2026 (ISIN: XS2796492572);

• $3.91 million of 10 1/8% dollar-denominated notes due Jan. 27, 2024 (ISIN: XS2108546651) were exchanged for 14.8% dollar-denominated notes due on March 26, 2026 (ISIN: XS2796492655); and

• £391,000 of 10 1/8% sterling-denominated notes due Jan. 27, 2024 (ISIN: XS2108546578) were exchanged for 14 7/8% sterling-denominated notes due on March 26,2026 (ISIN: XS2796492812).

Originally, the company offered to exchange the existing notes at an exchange ratio of 1 to 1 for the following new notes:

• 14 5/8% euro-denominated notes due Jan. 2, 2026 (ISIN: XS2736390472);

• 14.8% dollar-denominated notes due Jan. 2, 2026 (ISIN: XS2736390712); and

• 14 7/8% sterling-denominated notes due Jan. 2, 2026 (ISIN: XS2736390985).

Zenith stated in the release it received information confirming that a significant number of noteholders were unable to participate in the exchange due to difficulties with their chosen investment platform and the deadline having now elapsed and noted that they will seek to engage proactively with these noteholders to enable the note exchange on terms which have yet to be defined.

As previously reported on March 1, Zenith said it received indications that a significant majority of noteholders had decided to accept the offer. Given the increasing positive response to the exchange and the time required for its implementation, the company extended the deadline for completing the exchange until March 18, with settlement originally expected to take place on or around March 26.

The company had previously extended the deadline to March 8 and the settlement date to March 15. It was stated in that announcement that the company did not plan to make any additional extensions to the exchange timeline.

Further information may be obtained from the company (Andrea Cattaneo, chief executive officer; 587 315-1279; info@zenithenergy.ca).

The oil and gas company is based in Calgary, Alta.

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