Evergreen Energy to swap stock for $3.14 million of 8% convertibles

By Angela McDaniels

Tacoma, Wash., Aug. 25 - Evergreen Energy Inc. agreed to issue common stock in exchange for $3.14 million principal amount of its 8% convertible senior notes due Aug. 1, 2012, according to an 8-K filing with the Securities and Exchange Commission.

The holders of the convertibles will receive 981,250 shares of common stock on a post-split basis. The company announced on Aug. 9 that it planned to execute a 1-for-12 reverse split of its stock on Aug. 20.

The exchange is expected to close within five trading days and includes a release of any claims the participating noteholders may have. The outstanding principal amount of the convertibles will be reduced to $24.4 million.

The company said it is continuing its discussions with other holders of the convertibles to evaluate options for further reducing the remaining balance.

"The agreement with a portion of the 2007 bondholders represents a milestone in our continued effort to come to a resolution with our bondholders on outstanding debt. We are focused on reaching the best terms with which to deleverage the company and to operate on firmer financial footing as a clean technology company," Thomas Stoner, chief executive officer and director of Evergreen Energy, said in a company news release.

Denver based Evergreen Energy makes GreenCert software, which measures greenhouse gases and generates verifiable emissions credits, and K-Fuel technology, which improves the performance of low-rank coals.

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