Mission Resources exchanges $15 million 10 7/8% notes for stock

New York, March 15 - Mission Resources Corp. said it repurchased $15 million principal amount of its 10 7/8% senior subordinated notes due 2007 in exchange for 6 million shares of common stock.

The Houston exploration and production company completed the transaction with a subsidiary of Harbert Management Corp.

"We are pleased to complete this very important step toward strengthening our balance sheet by converting an additional $15 million of debt to equity," said Mission's chairman, president and chief executive officer, Robert L. Cavnar, in a news release. "We have now eliminated approximately $57 million of debt and over $5 million of annual interest expense. We believe this transaction completes the equity phase of our recovery program and positions us well in our negotiations to replace our existing senior credit facility."

On Feb. 25, Mission Resources said it exchanged $15 million of its 10 7/8% senior subordinated notes due 2007 for 6.25 million shares of common stock. The company carried out the transaction with Stellar Funding Ltd., a private investment fund managed by an affiliate of Guggenheim Capital LLC.

On Dec. 18 it issued 4.5 million shares of stock in exchange for $10 million of its 10 7/8% senior subordinated notes due 2007. The transaction was with Franklin Advisers Inc. on behalf of Franklin Templeton funds, the largest holder of the company's notes.

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