BPZ Resources Prices $140MM of Senior Notes

BPZ Resources has priced an offering of $140 million principal amount of 6.5% convertible senior notes due March 1, 2015. The Company also granted to the initial purchaser of the Notes an option to purchase an additional $21 million aggregate principal amount of the Notes solely to cover over allotments, if any.  In addition, the International Finance Corporation (IFC) holds the right to participate in the Offering for up to 45 days after being notified, which if exercised would increase the size of the Offering.


Net proceeds from the sale of the Notes, after deducting the discounts and commissions and any offering expenses payable by the Company, will be approximately $135.1 million (or approximately $155.4 million if the option is exercised in full). The Company expects the offering to close on or about February 8, 2010, subject to customary closing conditions.


The Company intends to use the net proceeds for general corporate purposes, including without limitation, capital expenditures and working capital, reduction or refinancing of debt, or other corporate obligations.


The Notes will be convertible under certain circumstances and during certain periods at an initial conversion rate of 148.38 shares of BPZ's common stock per $1,000 principal amount of Notes, representing an initial conversion price of approximately $6.74 per share of BPZ common stock, which is equal to an approximate 20% conversion premium over the negotiated reference price.




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