Petrominerales holders tender $250 million of 2.625% convertibles

By Angela McDaniels

Tacoma, Wash., June 1 - Petrominerales Ltd. received tenders for $250 million of its $521.8 million of 2.625% senior convertible bonds due 2016, according to a company news release.

The company offered to buy back up to $275 million of the convertibles from offshore holders. The tender offer began on May 31, and holders had until 9:30 a.m. ET on June 1 to submit offers.

The tendered convertibles will be bought back at 98.5% of par plus accrued interest and will be canceled as soon as possible after June 12, leaving $271.8 million principal amount of convertibles outstanding.

The purchase price was determined via a modified Dutch auction procedure. The purchase price range was $95,000 to $100,00 per $100,000 principal amount of convertibles.

The convertibles have a put option on Aug. 25, 2013.

The company also priced $400 million principal amount of new 3.25% senior convertible bonds due 2017 with a conversion premium of 35%. In the tender offer, preference was given to the holders of the existing convertible switching into the new convertibles.

The condition to the new issue and the tender offer that holders tender at least $150 million principal amount of existing convertibles has been met. The tender offer is conditioned on the successful offering of the new convertibles.

As part of issuing the new convertibles, Petrominerales said it repurchased 10 million common shares from some offshore holders at the May 31 closing stock price. The amount repurchased represents 10% of the issued and outstanding common shares on that date.

ABG Sundal Collier Norge ASA is the manager for both the tender offer and the new issue.

Petrominerales is an oil and gas company based in Bogota, Colombia.

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