Paramount Energy seeks OK to amend and extend 6.25% convertibles

By Jennifer Chiou

New York, Oct. 14 - Paramount Energy Trust announced plans to seek approval from holders of its 6.25% convertible unsecured subordinated debentures due June 30, 2010 and its 6.25% convertible unsecured subordinated debentures due April 30, 2011 to:

• Increase the coupon to 6.75%;

• Reduce the conversion price to $8.40;

• Provide a four-year non-call provision until Oct. 31, 2013; and

• Extend the maturity date to Oct. 31, 2016.

All other terms of the debentures will remain unchanged.

"Amending and extending the 2010 and 2011 debentures re-aligns the debentureholders' and unitholders' interests and re-establishes the long-term component of the trust's debt structure," Sue Riddell Rose, president and chief executive officer, said in a news release.

The conversion prices are currently $19.35 and $23.80 per unit for the 2010 debentures and 2011 debentures, respectively.

The company is seeking authorization from at least two-thirds of noteholders.

Paramount Energy is a natural gas-focused energy trust based in Calgary, Alta.

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