Epsilon Energy seeks consents to redeem 7.75% convertibles on Feb. 16

By Angela McDaniels

Tacoma, Wash., Jan. 6 – Epsilon Energy Ltd. is asking holders for the right to redeem its 7.75% convertible subordinated debentures early, according to a notice to debenture holders.

Under their current terms, the convertibles may only be redeemed at the option of Epsilon prior to the maturity date, March 31, 2017, if the current market price exceeds 125% of the conversion price.

The current conversion price is C$4.45. The company’s stock closed at C$2.92 (Toronto: EPS) on Jan. 5.

If the consent solicitation is successful, the company plans to redeem the convertibles at par plus accrued interest on Feb. 16.

Consents are needed from the holders of at least C$25,640,769, or two-thirds, of the convertibles.

The consent solicitation will expire at 6:30 p.m. ET on Jan. 30.

The tabulation agent is Computershare Trust Co. of Canada (corporatetrust.calgary@computershare.com).

Calgary, Alta.-based Epsilon Energy is an onshore exploration and production company.

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