Gastar exercises right to sell additional $10 million senior secured notes

By Jennifer Chiou

New York, Sept. 9 - Gastar Exploration, Ltd. said it is exercising its right to require holders of its senior secured notes to purchase an additional $10 million in notes on Sept. 19.

In addition to the notes, the company will issue C$714,286 of its shares based upon a five-day weighted average trading price for the five trading days prior to closing.

In connection with the notes sale, Gastar will issue to the note purchasers stock in C$714,286 increments on each of the six-, 12- and 18-month anniversaries of the closing date.

As previously reported, on a quarterly basis, the company has the right to require the investors to purchase up to an additional $10 million of notes from November 2005 to June 17, 2007.

Gastar is a Houston-based exploration and production company focused on finding and developing natural gas assets in North America and Australia.

On June 20, Gastar issued $63 million of the notes with a coupon of Libor plus 6%.

At the same time, the company also priced 1.2 million common shares at C$3.69 per share.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.