Greenfields Petroleum plans to sell C$20 million five-year convertibles to yield 7.5%, up 37%

By Rebecca Melvin

New York, May 8 - Greenfields Petroleum Co. planned to price C$20 million five-year convertible debentures at par that were talked to yield 7.5% with an initial conversion premium of 37%, according to a syndicate source.

There is a C$3 million, or 15%, over-allotment option.

Proceeds are earmarked to fund its work-over and drilling program in Gum Deniz Oil Field and Bahar Gas Field as well as for general corporate and working capital purposes, according to a company news release.

The debentures will be sold publicly in all provinces of Canada, except Quebec, and under Rule 144A in the United States via a syndicate of underwriters co-led by FirstEnergy Capital Corp. and CIBC World Markets Inc.

The debentures will be non-callable until May 31, 2015 and then provisionally callable subject to a 125% price hurdle.

The offering is scheduled to price Tuesday, with closing by May 30, and is subject to regulatory approvals.

Houston-based Greenfields Petroleum is an oil and natural gas company focused on reserves in the Republic of Azerbaijan.

© 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.