Nido Bond Issue to Fund Philippines Projects
Nido Petroleum Limited said that it has reached agreement with Merrill Lynch's Corporate Principal Investments group in Hong Kong to provide a US$22 million (approximately A$29 million) unsecured, unsubordinated convertible bond due August 2011, subject to final documentation and regulatory review.
Proceeds from the issue will be used to assist Nido's funding requirements for its exploration and development expenditures associated with its Philippine assets, with its Rapid Oil Development ("ROD") initiatives and working capital.
The Convertible Bonds will be unlisted and carry a coupon rate of 8.5% per annum, payable quarterly. Interest is not payable for the first 18 months, but will accrue. The initial conversion price is set at A$0.26 per ordinary share, a 30% premium to the volume weighted average price of Nido's shares for the 20 trading days immediately prior to 9 August 2006, subject to adjustment.
The issue utilizes Nido's 15% placement capacity and as such, does not require shareholder approval. The Bonds will be converted into a maximum of 114,307,091 shares.
Gillian Evans, Chief Financial Officer of Nido commented "The Convertible Bond will allow Nido to
fund the growth of its exploration and development projects in the Philippines. We are very pleased
that Merrill Lynch has chosen to invest in Nido and to participate in our future growth and success."
- Philippines' Galoc Phase 3 Oil Field Development Plan for Start-up in 2019 (Aug 17)
- Partners Nearer to Further Development of Galoc Oil Field Offshore Palawan (Jul 14)
- Otto Energy Completes Sale of Galoc Production Co. Stake to Nido for $106M (Feb 17)