Terrace receives consents, court approval to exchange 8% convertibles

New York, Oct. 14 – Terrace Energy Corp. said it received the necessary consents from holders and approval from the Supreme Court of British Columbia for an exchange offer for its 8% convertible notes due April 2, 2018.

At a meeting held on Oct. 8, holders of 90.15% of the notes, or 95.45% of the total number of noteholders, voted in favor of the agreement, according to a news release.

Court approval was conditional on the support of noteholders.

Closing of the exchange is subject to conditions including regulatory approval.

Terrace Energy expects to complete the transaction on Oct. 15 and anticipates the new notes will be listed on the TSX Venture Exchange on Oct. 20 under the symbol “TZR.DB.”

As previously announced, the company was seeking holder approval to issue new notes with the same terms in exchange for the existing convertibles. The new notes will be governed by a trust indenture.

To carry out the exchange, the company needed approval by both a majority in number of noteholders and holders representing 75% in value of the notes present, in person or by proxy, at the meeting.

Terrace is an oil and gas explorer based in Vancouver, B.C.

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