AED Oil holders put some 9% convertibles; company amends note terms

By Marisa Wong

Madison, Wis., Feb. 24 - AED Oil Ltd. redeemed a portion of its outstanding 9% convertible notes and agreed to adjustments to the conversion price and a new put date, according to a Singapore Exchange announcement.

Holders put $8,605,000 of AED's $21,215,500 outstanding 9% notes on Wednesday at par.

The company reset the conversion price to $0.38, effective Feb. 25. The new conversion price is based on a 7.5% premium to the volume weighted average price calculated three days prior to the Feb. 23 put date.

When the price is reset again, it will be based on a 7.5% premium to the volume weighted average price for the five days before April 16, with a floor equal to 80% of the then current conversion price.

AED also set April 30 as a new put date for the notes. The new put date is expected to follow completion of testing of the Lempuyang and Lukut well.

"The introduction of the new put date and changes to the terms are in the best interests of both AED and noteholders. It allows us the time required to complete the testing and obtain those results and allows noteholders sufficient time to assess the merits of an equity investment after receiving the results of testing the prospective blue zone in Lempuyang-1," said executive chairman David Dix in the announcement.

The issuer is a Melbourne, Australia-based oil company.

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