Transmeridian Completes Private Offering
Transmeridian Exploration Incorporated (AMEX: TMY) has completed its previously announced private offering of $40 million aggregate principal amount of additional Senior Secured Notes due 2010 (the "Additional Notes") of Transmeridian Exploration Inc., a wholly owned British Virgin Islands subsidiary of the Company ("TMEI"), and 1,818,182 shares (approximately $10 million) of the Company's common stock.
The Company received net proceeds from the offering of approximately $47.9 million after payment of placement agent fees and transaction expenses. The Company used $3.6 million of the net proceeds of the offering to pre-fund the first three quarterly interest payments due on the Additional Notes and intends to use the remaining net proceeds of the offering to contract two additional drilling rigs to accelerate the development of its South Alibek Field in Kazakhstan and for working capital and general corporate purposes.
As a result of the completion of the offering, the supplemental indenture entered into in connection with the previously announced completion of TMEI's consent solicitation with respect to its $250 million of existing Senior Secured Notes due 2010 (the "Existing Notes"), and the proposed amendments to the indenture provided for therein, are now effective. Pursuant to the consent solicitation, TMEI solicited consents to amend the indenture to permit (i) the issuance of the Additional Notes and (ii) the payment of accrued dividends on the Company's outstanding Series A cumulative convertible preferred stock in an amount not to exceed $1 million.
The offer and sale of the Additional Notes by TMEI and the common stock by the Company were not registered under the Securities Act of 1933 or the securities laws of any other jurisdiction, and the Additional 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)