Harvest Natural Resources Closes Senior Notes Offering

Harvest Natural Resources has closed its registered direct offering raising gross proceeds of $32 million, before transaction related expenses. The offering, which closed on February 17, 2010, consisted of 8.25% senior convertible notes due 2013.

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 net proceeds of the offering to Harvest were approximately $30 million, after deducting underwriting discounts, commissions and estimated offering expenses. Harvest intends to use the net proceeds of the offering to fund capital expenditures and for working capital needs and general corporate purposes.

Harvest President and Chief Executive Officer, James A. Edmiston, said, "The proceeds from this offering provide us with additional financial resources for funding our growth plan and maturing our exploration portfolio. These funds, in combination with the self-funded capital budget for Petrodelta, S.A., enable us to continue growing reserves and production as well as drill and test our potentially high-impact prospects in the United States, Indonesia, and Gabon."



Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours