BPZ's greenshoe exercised, lifts 8.5% convertibles by $18.8 million

By Marisa Wong

Madison, Wis., Sept. 30 - BPZ Resources, Inc. announced that Raymond James & Associates, Inc., the underwriter of its previously reported offering of 8.5% convertible senior notes due 2017, exercised in full its option to purchase an additional $18.8 million of the notes.

This brings the total deal size to $143.8 million. The original $125 million of 8.5% convertibles priced at a 10% discount to par with a 75% initial conversion premium on Sept. 19. The initial notes settled on Sept. 24, and the additional notes from the greenshoe settled on Monday.

The registered, off-the-shelf deal was initially seen at $110 million in size. Pricing came at the cheap end of coupon talk, which was 8% to 8.5%, and at the talked premium price point.

According to a press release on Monday, the International Finance Corp. holds the right to participate in the offering for up to 45 days after being notified of the terms of the offering. If that right is exercised, the size of the offering could be further increased.

As previously reported, proceeds from the 8.5% convertibles will be used to repurchase BPZ's existing 6.5% convertibles due 2015 and for general corporate purposes, including funding exploration and production or reducing or refinancing existing debt.

The Houston-based company also repaid a $36 million balance under its secured bank debt facility, Monday's release noted.

BPZ is an oil and natural gas exploration company.

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