Finance - Redemptions
The series U shares will be redeemed at $50 per share plus $0.5907 representing accrued and unpaid dividends to such redemption date.
The company intends to fund the redemption with cash on hand and available borrowings under its bank credit facility.
Each holder will have the right to convert their debentures into common shares at a conversion price of $5.60 per common share at any time on or prior to Oct. 18.
An aggregate $510 million of the senior notes are outstanding as of Aug. 5.
The company currently has some 43.3 million common shares issued and outstanding.
The term loan will be funded in conjunction with the early redemption of the company’s remaining US $275 million senior unsecured notes.
D.F. King & Co. Inc. is the tender agent and information agent and BofA Merrill Lynch is dealer manager and solicitation agent.
Net proceeds will be used to repay borrowings outstanding under its credit facility, but might be used to fund capital expenditures for growth projects.
The principal amount of some C $1.6 million of debentures is outstanding.
Penn Virginia issued a tender offer to purchase any and all of its US $300 million in outstanding aggregate principal amount of 10.375% senior notes due 2016.