Interoil seeks to strengthen balance sheet through debt to equity conversion
Oslo, 11 December 2019
Interoil Exploration and Production ASA (Interoil) has summoned bondholders in its senior secured bond (ISIN NO 001 0729908) to a bondholders’ meeting on 30 December 2019 to consider conversion of 35 per cent of the outstanding principal amount to equity and extension of maturity date by six years to 2026 for the remaining bonds.
“If approved, the conversion of bonds to equity and amended terms will significantly strengthen Interoil’s balance sheet and improve our ability to finance our current operations and support further growth in Latin America”, says Hugo Quevedo, Interoil’s Chairman.
After conversion, Interoil’s consolidated group equity will change from USD negative 6.1 million (as per 30 September 2019) to approximately USD 6 million positive. Annual interest costs will be reduced by approximately USD 0.4 million per annum.
“Interoil saw a remarkable transformation earlier this year, as we acquired new licenses and expanded our operations into Argentina, supported by new shareholders with successful investment track record in exploration and production activity and in Latin America.
The proposed conversion of debt to equity will bring more shareholders to the company. We are delighted to welcome them on board, and look forward to creating further value for all,” Quevedo says.
The proposed conversion of bonds is conditional upon approval by Interoil’s shareholders at an extraordinary general meeting to be summoned on 16 January 2020.
The conversion is proposed to be effectuated by a share capital increase at a subscription price equal to a discount of 20 per cent from the volume-weighted average market price of the Interoil shares in the 60-calendar day period immediately preceding the bondholder’s meeting.
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Interoil Exploration and Production ASA is a Norwegian based exploration and production company – listed on the Oslo Stock Exchange – with focus on Latin America. The Company is operator of several production and exploration assets in Colombia and Argentina. Interoil currently employs approximately 50 people and is headquartered in Oslo.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.