Toreador has entered into a privately negotiated exchange agreement with an institutional investor for the exchange of $22.2 million aggregate principal of the Company's existing 5.00% Convertible Senior Notes due 2025 (the "Existing Notes") and new funding of $9.4 million cash for $31.6 million aggregate principal of new 8.00%/7.00% Convertible Senior Notes due 2025 (the "New Notes"), plus accrued and unpaid interest on the Existing Notes being exchanged.
Toreador President and CEO Craig McKenzie commented, "We are very pleased to have negotiated this agreement with this investor. The exchange significantly reduces the amount of the existing 5% Convertible Senior Notes that the company could be required to repurchase in October 2010. The removal and/or restructuring of our current debt has been a key strategic goal, and this transaction adds flexibility to our balance sheet going forward."
The terms of the New Notes are substantially the same as those of the Existing Notes. Key differences include:
The exchange transactions are scheduled for settlement today, February 1, 2010, subject to customary closing conditions. RBC Capital Markets and Thomas Weisel Partners LLC acted as advisors to the Company for the exchange transaction.
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