Harvest Natural Resources Prices Offering
Harvest Natural Resources has successfully priced its senior convertible notes offering.
Harvest announced that it has entered into definitive agreements with select institutional investors to raise gross proceeds of up to $32 million, before deducting placement agents' fees and other estimated offering expenses, in a registered direct offering of 8.25% senior convertible notes due 2013. In contemplation of this offering, Harvest entered into a placement agent agreement with Lazard Capital Markets LLC, as lead placement agent, and Madison Williams and Company LLC, as co-placement agent.
Under the terms of the notes, Harvest will pay interest semi-annually and the notes will mature on March 1, 2013, unless earlier redeemed, repurchased or converted as described below. The notes are convertible into shares of Harvest common stock at a conversion rate of 175.2234 shares of common stock per $1,000 principal amount of convertible notes, equivalent to a conversion price of approximately $5.71 per share of common stock, subject to adjustment. The notes will be Harvest's general unsecured obligations, ranking equally with all of its other unsecured senior indebtedness, if any, and senior in right of payment to any of its subordinated indebtedness, if any. The notes are also redeemable in certain circumstances at the option of Harvest and may be repurchased by Harvest at the purchaser's option in connection with occurrence of certain events. The closing of the offering is expected to take place on February 17, 2010, subject to the satisfaction of customary closing conditions.
Harvest intends to use the estimated net proceeds of $30 million from the offering to fund capital expenditures, working capital needs and for general corporate purposes.
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