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Harvest extends early premium in exchange offer for 6 7/8% notes
By Susanna Moon
Chicago, May 31 – Harvest Operations Corp. said it extended the early deadline in the exchange offer for its $500 million of outstanding 6 7/8% senior notes due 2017.
The early deadline was revised to 11:59 p.m. ET on June 13, pushed back from 5 p.m. ET on May 27, to encourage more holders to tender their notes, according to a company update.
The exchange ends at 11:59 p.m. ET on June 13.
As announced May 16, Harvest is offering new 2.33% guaranteed notes due 2021 with a guarantee from Korea National Oil Corp. in exchange for the 6 7/8% notes.
Harvest is also soliciting consents to amend the 6 7/8% notes in order to eliminate some covenants.
For each $1,000 principal amount of the existing notes tendered, holders will receive $900 of the new notes.
The amount includes an early tender premium of $30 per $1,000. Because the early tender deadline was extended to the same time as the offer expiration, all holders who tender in the offer will receive this premium.
Completion of the offer is subject to conditions, including that consents to the indenture amendment are received from holders of a majority of the existing notes.
Harvest Operations said that a holder owning 41% of the existing notes has agreed to tender those notes and deliver consents.
Settlement is expected within three days of the expiration of the offer.
In addition to issuing new notes, Harvest will also pay accrued interest up to but excluding the settlement date in cash.
The offer is being conducted under Rule 144A and Regulation S.
D.F. King & Co., Inc. (877 732-3619, 212 269-5550 or e-mail at harvest@dfking.com) is the exchange and information agent.
Harvest Operations, based in Calgary, Alta., is an oil and natural gas exploration and production company that also has an oil sands project under construction. It is a subsidiary of Korea National Oil, a state-owned oil and gas company.
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