Harvest Energy redeemed $156 million debentures, $40 million 7 7/8% notes during first quarter

By Jennifer Chiou

New York, May 12 - Harvest Operations Corp. announced in a release of financials that Harvest Energy Trust redeemed a portion of its debentures and $40 million of its $250 million of 7 7/8% senior notes during the first quarter of 2010.

The company had to offer to purchase all of the debentures and notes at 101 plus accrued interest due to a change of control that arose from an arrangement with Korea National Oil Corp. Canada.

As a result, the company purchased $156 million of the $914 million face value of debentures.

The offer was made on Jan. 19, and it ended by March 4.

Harvest financed the redemptions through the issue of $600 million of additional equity to Korea National in 2009, which was followed with another $466 million of equity in the first quarter.

Calgary, Alta.-based Harvest Energy Trust is an energy royalty trust that acquires and manages oil and gas properties.

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