Penn West accepts tenders for $5.08 million 6.5%, $1.51 million 7.2% convertibles

By Jennifer Chiou

New York, March 4 - Penn West Petroleum Ltd. announced the results of its cash tender offers to purchase all of its 6.5% convertible extendible unsecured subordinated debentures due Dec. 31, 2011 and 7.2% convertible unsecured subordinated debentures due May 31, 2011.

The company accepted tenders for $5,081,000 of the 6.5% debentures for a total cash consideration of $5,187,910. It accepted tenders for $1,506,000 of the 7.2% convertibles for a total cash consideration of $1,548,695.

Following the offers, $223,898,000 of the 6.5% debentures and $24,715,000 of the 7.2% debentures remain outstanding.

As already reported, in connection with the company's parent Penn West Energy Trust converting from an income trust to a corporation on Jan. 1, Penn West Petroleum assumed all of the Calgary, Alta., oil and gas investment trust's obligations concerning the debentures.

As a result, the company had to make an offer to buy the 6.5% debentures and 7.2% debentures at 101 plus interest to the repurchase date. Including accrued interest, the company paid $1,021.04 per $1,000 principal amount of the 6.5% debentures and $1,028.35 per $1,000 principal amount of the 7.2% debentures.

Investors had until 3:01 a.m. ET on March 3 to participate in the offer, which launched on Jan. 26.

Penn West is a Calgary, Alta.-based energy company.

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