BPZ Resources, Inc. has elected to exercise its right to convert $15.5 million of debt with the International Finance Corporation (IFC) into 1,491,819 common shares of BPZ Resources.
The terms of the Convertible Debt agreement, dated November 19, 2007, stipulate a conversion price of $10.39 per share and include a forced conversion, exercisable at the Company's option, if the closing price of the Company's common stock exceeds a price of $18.19 per share based on the average closing price over a period of twenty consecutive business days. The elimination of the related debt service is a significant benefit to the Company at this early stage, with the resulting cash savings being available to fund BPZ's strategic short-term growth initiatives.
Immediately after conversion, the Company had 78,130,290 common shares outstanding, with fully diluted share count of 82,085,738.
Manolo Z˙˝iga, President and Chief Executive Officer, stated, "With the conversion of the debt into equity, IFC now owns approximately 10% of BPZ. In addition to IFC's equity participation, we are currently negotiating a term sheet with them on a credit facility of approximately $200 million subject to a borrowing base calculated from our recently announced oil reserve report and will enable us to continue developing the Corvina and Albacora oil projects, as well as an additional $120 million debt facility to fund the development of our gas-to-power project. We are extremely pleased to have IFC as a financial partner and look forward to continuing to build shareholder value through our relationship."
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