By Sheri Kasprzak
New York, June 18 - Transmeridian Exploration Inc. plans to close a $40 million private placement of junior redeemable convertible preferred stock.
The company agreed to sell 400,000 shares of the preferreds at $100.00 each to institutional investors.
The 20% preferreds are convertible into 16,129,032 common shares at $2.48 each.
The preferreds may be redeemed on March 15, 2012 at the liquidation preference plus accrued dividends or at 125% of the liquidation preference if there is a change of control of the company.
Of the shares, 100,000 were issued Monday. The rest will be issued in a second closing expected to close on June 25.
Proceeds will be used to satisfy the company's interest payment obligation on its 12% senior secured notes due 2010. The rest will be used for working capital and general corporate purposes.
Houston-based Transmeridian is an oil acquisition and development company.
| Issuer: | Transmeridian Exploration Inc.
|
| Issue: | Junior redeemable convertible preferred stock
|
| Amount: | $40 million
|
| Shares: | 400,000
|
| Price: | $100.00
|
| Conversion price: | $2.48
|
| Conversion ratio: | Into 16,129,032 shares
|
| Call: | Redeemable on March 15, 2012 at liquidation preference plus accrued dividends or at 125% of liquidation preference if there's a change of control of company
|
| Warrants: | No
|
| Announcement date: | June 18
|
| Settlement date: | June 18 (for 100,000 shares); June 25 (for remainder of shares)
|
| Stock symbol: | Amex: TMY
|
| Stock price: | $2.22 at close June 18
|
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