Hurricane Hydrocarbons Ltd. Announces Plans for a C$4.00 per Share Special Distribution
CALGARY, May 15, 2001 (Canada NewsWire via COMTEX) -- (Nasdaq: HHLF) (TSE: HHL.A) Hurricane Hydrocarbons Ltd. ("Hurricane") announces today at its Annual and Special Meeting of Shareholders that its Independent Committee of the Board of Directors has approved in principle and will recommend that the Board of Directors declare a special distribution to the holders of its common shares in the amount of approximately C$4.00 per share, which would be paid by the issuance of approximately US$200 million of subordinated debentures to the Hurricane shareholders. The special distribution would be made to all shareholders.
The subordinated debentures would have a term of five years and will be redeemable at par by Hurricane at any time and retractable at the option of the holder at par upon a change of control. The debentures will have scheduled annual repayments over their five-year term. The special distribution is subject to approval by the Board of Directors of Hurricane. The interest rate on the debentures will be fixed at the time of board approval and will be a rate at which the debentures could be expected to trade initially at par. It is expected that the record date for the special distribution will be in mid June and that the debentures would be sent to shareholders on or about June 22, 2001.
A plan to return about US$200 million to shareholders has been under consideration by Hurricane since March of 2001.
Bernard Isautier, President and Chief Executive Officer, commented: "This distribution will correct the over capitalization of the company. Hurricane will continue to pursue an aggressive internal and external growth strategy and after the distribution, will have the ability to finance such growth from internally generated cash flow."
At the shareholders' meeting today, management made a detailed presentation on the company's future plans and growth prospects. This presentation can be accessed on the company's website at www.hurricane-hhl.com.
Statements contained in this press release which are not historical facts are forward-looking statements which involve risks and uncertainties which could cause actual results or events to differ materially from those expressed in the forward looking statements.
Hurricane's shares trade on the Toronto Stock Exchange under the symbol HHL.A and in the United States on Nasdaq under the symbol HHLF.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
CONTACT: For further information: Bernard F. Isautier, President and Chief
Executive Officer, 44-1753-410-020, Ihor P. Wasylkiw, Vice President Investor
Relations, (403) 221-8658 |
