Toreador has repurchased $16.7 million face value of its 5% convertible senior notes, due in 2025, at a discounted purchase price of $12.7 million. In addition, the Company expensed $0.65 million of prepaid loan fees attributable to the repurchased notes. This repurchase will result in a gain of $3.3 million on the early extinguishment of debt, which will be recorded in the second quarter of 2009.
Mr. Craig McKenzie, CEO of Toreador, said, "We continue to prudently strengthen our balance sheet and improve our capital structure. We believe these bond repurchases are another important step toward achieving our strategic priorities for 2009, and underscore our commitment to building long-term value for our shareholders. Since the beginning of this year we have reduced our total indebtedness from $110.2 million to $63.6 million. We are now working diligently to reduce our debt further."
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