BPZ Closes $10M Notes Offering

BPZ Resources announced the closing of its offering of approximately $10 million principal amount of 6.5% convertible senior notes due March 1, 2015. As previously announced, the International Finance Corporation (IFC) had the right to participate in the Company's offering of Notes initially closed on February 8, 2010 under the same terms and conditions as the other investors who participated in that offering. The Notes were sold in a private placement to Raymond James as the initial purchaser and then to IFC, a qualified institutional buyer, pursuant to Rule 144A under the Securities Act of 1933, as amended.

The Notes will be convertible under certain circumstances and during certain periods at an initial conversion rate of approximately 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.

Net proceeds from the sale of the Notes to IFC, after deducting the discounts and commissions and any offering expenses payable by the Company, were approximately $9.7 million. 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.


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