Transmeridian Determines Issue Prices for Private Offering
Transmeridian Exploration Incorporated (AMEX: TMY) has determined the issue prices for its previously disclosed private offering of (i) $40 million aggregate principal amount of additional Senior Secured Notes due 2010 of Transmeridian Exploration Inc., the Company's wholly owned British Virgin Islands subsidiary ("TMEI"), and (ii) approximately $10 million of the Company's common stock. The notes will be issued and sold for an issue price of 97% of the principal amount thereof plus accrued interest from March 15, 2006, and the Company will issue 1,818,182 shares of its common stock at an issue price of $5.50 per share. The offering is expected to close on or about May 26, 2006.
The Company expects to receive aggregate gross proceeds from the offering of approximately $49 million before payment of placement agent fees and transaction expenses. The Company intends to use the net proceeds of the offering to contract two additional drilling rigs in order to accelerate the development of its South Alibek Field in Kazakhstan, to pre-fund the first three quarterly interest payments due on the additional notes sold and for working capital and general corporate purposes.
The offer and sale of the notes by TMEI and the common stock by the Company has not and will not be registered under the Securities Act of 1933 or the securities laws of any other jurisdiction, and the notes and the common stock may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release is for informational purposes only and shall not constitute an offer to sell or a solicitation of an offer to buy any securities.
Transmeridian Exploration Incorporated (TMEI) is an independent
energy company established to acquire and develop oil reserves
in the Caspian Sea region of the former Soviet Union. TMEI
primarily targets medium-sized fields with proved or probable
reserves and significant upside reserve potential. Its first
major project is the South Alibek Field in Kazakhstan and
it is currently pursuing additional projects in the Caspian
Sea and surrounding regions.
- Transmeridian Amends Exchange Offer for 12% Senior Secured Notes (Sep 23)
- TMEI, Subsidiary Extend Conent Payment Deadline on 2010 Notes (Sep 08)
- Transmeridian Extends Deadline Related to 2010 Senior Secured Notes (Sep 02)