Cardinal Energy 5.5% convertibles holders may swap for 8% convertibles

By Wendy Van Sickle

Columbus, Ohio, June 19 – Cardinal Energy Ltd. said it received approval from the holders of its 5.5% convertible debentures due Dec. 31, 2020 to exchange the paper for new notes that have a higher coupon and longer maturity.

The company said holders of 99.54% of debentures represented at a meeting on Friday approved the company’s proposed amendments.

As a result, all of the holders have the right until 5 p.m. ET on July 20 to exchange the convertibles for new 8% convertibles due Dec. 31, 2022.

The conversion price will be lowered to C$1.25 per share, compared to C$10.50 per share currently, and the new convertibles will not be redeemable before Dec. 31.

Computershare Investor Services Inc. (800-564-6253 or corporateactions@computershare.com) is the exchange agent.

Calgary, Alta.-based Cardinal Energy is an oil-focused company with operations in Alberta.

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