Bellatrix gets required consents, extends voting deadline to May 21

By Sarah Lizee

Olympia, Wash., May 16 – Bellatrix Exploration Ltd. received the requisite level of debtholder approvals to implement a recapitalization transaction under a corporate plan of arrangement, according to a press release.

The company said 100% of the votes relating to its 8˝% senior notes due 2020 cast to date, representing about 99.5% of the notes, and about 99.65% of the votes relating to its 6.75% convertible debentures due 2021 cast to date, representing about 84.2% of the convertibles, were cast in favor of the approval of the plan of arrangement.

The company is extending the early consent date to 5 p.m. ET on May 21 from 5 p.m. ET on May 15 to provide remaining holders of notes and convertibles the opportunity to receive new second-lien notes and early consent common shares, respectively.

Holders of senior notes will be entitled to receive a pro rata share of $50 million of new second-lien notes due September 2023 as partial consideration for the exchange of their existing notes, and holders of convertibles will receive a pro rata share of new early consent common shares of Bellatrix representing about 5% of the common shares of Bellatrix outstanding immediately following the implementation of the recapitalization transaction as additional consideration for the exchange of their convertibles.

As previously reported, Bellatrix announced in March that it is undertaking a recapitalization transaction to improve its financial position.

The recapitalization is designed to reduce the company’s total outstanding debt by about C$110 million, or about 23%, and reduce annual cash interest payments by over C$12 million annually until Dec. 31, 2021.

The transaction will also address the company's debt maturities so that Bellatrix should have no non-revolving debt maturities until 2023.

The recapitalization contemplates an exchange of all of the company’s $145.8 million of 8˝% senior unsecured notes due 2020 for a combination of $50 million of new second-lien notes due September 2023, $50 million of new third-lien notes due December 2023 and about 51% of Bellatrix outstanding common shares immediately following the settlement date.

In addition, the transaction will include an exchange of all of the company’s C$50 million of 6.75% convertible debentures due 2021 for about 32.5% of Bellatrix outstanding common shares immediately following the settlement date.

Bellatrix is an oil and gas exploration and production company based in Calgary, Alta.

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