Harvest Natural Resources to Redeem 9 3/8% Senior Notes
Harvest Natural Resources
|Thursday, September 02, 2004
Harvest Natural Resources, Inc. (NYSE: HNR) announced that its Board of Directors has approved redemption of all $85 million of the Company's 9 3/8% Senior Notes (the "Notes") on November 1, 2004, the date on which the call premium is reduced to 1.5625%. The Notes are scheduled to mature November 1, 2007. The funds necessary to redeem the Notes will be irrevocably deposited with the Trustee in September.
Harvest President and Chief Executive Officer, Peter J. Hill said, "Redeeming the Notes prepays virtually all of our debt and eliminates $8 million of annual interest expense charge. After the redemption, we will have substantial cash balances of approximately $70 million plus the cash generated by our Venezuelan properties available to fund our acquisition programs in Venezuela and Russia. Eliminating the Senior Note covenants at this time improves our flexibility to borrow at the asset level and our ability to design future credit facilities to more closely match our organizational structure and cash needs."