Bellatrix Exploration Ltd. (TO: BXE) will use the market price of $7.62 per share in its redemption of its outstanding 4.75% convertible unsecured subordinated debentures due 2015.
As a result, holders of debentures who have not elected to convert their debentures prior to the redemption date will receive 134.2047 common shares for each $1,000 principal amount of debentures, which includes common shares issued based on the redemption issuance price to satisfy accrued and unpaid interest up to, but excluding, the redemption date. As set out in the previously issued press release and notice of redemption, the redemption date of the debentures will be Oct. 21.
Pursuant to the terms of the debentures, the redemption issuance price was calculated based on 95% of the volume weighted average trading price of the common shares on the Toronto Stock Exchange for the 20 consecutive trading days ending on Oct. 11.
Each holder not wishing to receive common shares upon redemption of the debentures at the redemption issuance price has the right to convert their debentures into common shares at a conversion price of $5.60 per share at any time on or prior to Oct. 18. A holder electing to convert the principal amount of their debentures will receive 178.5714 common shares for each $1,000 principal amount of debentures converted plus a cash payment for accrued unpaid interest up to, but excluding, the conversion date.
No fractional shares will be issued on redemption or conversion but, in lieu thereof, the company shall pay the cash equivalent thereof determined on the basis of the current market price of the common shares on the redemption date or conversion date, as applicable.
The debentures will be delisted from trading on the TSX at the close of trading on the redemption date.
Bellatrix Exploration Ltd. is an independent energy company engaged in the acquisition, exploration, development, and production of oil and natural gas properties in Canada. The company is headquartered in Calgary.
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