ZaZa Energy holders put back all $50.1 million of 8% notes due 2017

By Tali Rackner

Norfolk, Va., Sept. 21 – ZaZa Energy Corp. said holders of all of its 8% subordinated notes due 2017, totaling about $50.1 million, exercised their put option in exchange for an overriding royalty interest in the company's future lease acquisitions, according to a press release.

All of the notes were held directly or indirectly by the three founders of ZaZa, one of which is the current president and chief executive officer, and all of which are directors.

Each of the three holders will receive a 0.8% overriding royalty interest on the company's future lease acquisitions, or a total overriding royalty interest of 2.4%.

“We remain in discussions with our lenders, including the holders of our approximately $15 million senior secured notes, with whom I am diligently working to have them approve extending their maturity to mid-2016, 2017, or beyond – the further out the better. I can make no promises on this front, but I am working very hard on this,” president and CEO Todd Brooks said in the news release.

“Our goal is to become an almost debt-free company sooner rather than later, and we are laser focused on that front.

“As our balance sheet continues to improve, we are also looking to add additional resources, whether in the form of cash or other financing instruments.”

Houston-based ZaZa is an onshore oil and gas exploration and development company.

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