BPZ Resources withdraws $150 million secured notes offer, cites market conditions

By Paul A. Harris

Portland, Ore., Oct. 16 – BPZ Resources, Inc. cited market conditions as it pulled its $150 million offering of senior secured notes due 2019 from the market.

"The current market conditions have led us to conclude that our offering of the senior secured notes is not in the best interests of the company at this time,” president and chief executive officer Manolo Zuniga remarked in a Thursday press release announcing the withdrawal of the deal.

“We continue to monitor market conditions as well as review other options which would provide capital for the company.

“A cash position of approximately $79 million at the end of third quarter 2014 and continued production and cash flow growth this year gives us confidence that we will obtain necessary financing in a timely manner."

Seaport Global was the bookrunner.

The Houston-based company planned to use the proceeds to repay its 6½% convertible senior notes due March 1, 2015 and for general corporate purposes, including planned capital expenditures for field development and drilling in 2014 and 2015 and infrastructure.

BPZ Resources is an independent oil and gas exploration and production company with operations in Peru and Ecuador.

© 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.