Harvest Operations Corp. (TO: HTE-DBD) will redeem the C $330.5 million principal amount of its 7.25% convertible unsecured subordinated debentures scheduled to mature on Sep. 30, 2013.
Upon redemption, Harvest will pay to the holders the redemption price equal to the outstanding principal amount of the 2013 debentures to be redeemed together with all accrued and unpaid interest, but excluding the redemption date, for a total of C $1,002.9794 per C $1,000 principal amount. The 2013 debentures will cease to bear interest from and after the redemption date.
The redemption will be effected in accordance with the terms and definitions of the trust indenture and supplemental indenture governing the 2013 debentures.
On March 15, Harvest entered into a senior unsecured credit facility for US $400 million with a syndicate of four lenders. Harvest intends to use borrowings under the credit facility to redeem the 2013 debentures and Harvest's 7.25% convertible unsecured subordinated debentures scheduled to mature on Feb. 28, 2014 which are to be redeemed on April 2. The credit facility will be guaranteed by Korea National Oil Corp. and will terminate six months from initial drawdown.
Harvest Operations Corp. is an integrated energy company engaged in the exploration, development, and production of petroleum and natural gas in western Canada. The company is headquartered in Calgary and operates as a subsidiary of Korea National Oil Corp.
Korea National Oil Corp. is a state owned oil and gas company engaged in the E&P of oil and gas along with the storage of petroleum resources. The company is headquartered in Anyang, South Korea.