By Paul A. Harris
St. Louis, May 23 - Transmeridian Exploration Inc. announced has priced a $40 million add-on to its 12% senior secured notes due Dec. 15, 2010 at 97.00, the company said in a news release.
The company also raised about $10 million with its concurrent sale of about 1.8 million shares of common stock at $5.50 per share. As a result of the combined debt and equity offerings, the company anticipates receiving about $49 million of net proceeds.
Transmeridian will use the proceeds to contract two additional drilling rigs to accelerate the development of its South Alibek field in Kazakhstan, to prefund the first three quarterly interest payments and for working capital and general corporate purposes.
The original $250 million issue of 12% notes priced in a notes and warrants deal on Dec. 16, 2005, bringing the total issue size to $290 million.
Transmeridian is a Houston-based independent energy company.
| Issuer: | Transmeridian Exploration Inc.
|
| Amount: | $40 million
|
| Expected net proceeds: | $49 million, approximate (includes about $10 million from concurrent sale of common stock)
|
| Security description: | Add-on to 12% senior secured notes
|
| Maturity: | Dec. 15, 2010
|
| Coupon: | 12%
|
| Price: | 97.00
|
| Call features: | Callable on or after Dec. 15, 2008 at 106, 103, par on and after June 15, 2010
|
| Equity clawback: | Until Dec. 15, 2008 for up to 35% at 106
|
| Settlement date: | May 26
|
| Original issue: | $250 million priced in a notes/warrants deal on Dec. 16, 2005
|
| Total issue size: | $290 million
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
