BPZ down hard AH on news... just hit the news 5 mins. ago:
BPZ Energy to Offer $140 Million Convertible Senior Notes
Press Release Source: BPZ Resources, Inc. On Tuesday February 2, 2010, 4:15 pm
HOUSTON, Feb. 2, 2010 (GLOBE NEWSWIRE) -- BPZ Resources, Inc., d/b/a BPZ Energy, (NYSE:BPZ - News) announced today that it intends to offer, subject to market conditions and other factors, $140 million aggregate principal amount of convertible senior notes due 2015 (the “Notes”) to qualified institutional buyers pursuant to a private placement under Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Company also intends to grant to the initial purchaser of the Notes a 30-day option to purchase additional Notes up to an additional 15% of the aggregate principal amount of the Notes, to cover over-allotments, if any. In addition, the International Finance Corporation (IFC) holds the right to participate in the Offering for up to 45 days after being notified, which if exercised would increase the size of the Offering.
The Notes will be general unsecured senior obligations of BPZ, will pay interest semi-annually, and will be convertible during certain periods and under certain circumstances. Upon conversion, holders of the Notes will receive, at the election of the Company, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock. The interest rate, conversion rate and other terms are to be determined by negotiations between the Company and the initial purchaser.
The Company intends to use the net proceeds for general corporate purposes, including without limitation, capital expenditures and working capital, reduction or refinancing of debt or other corporate obligations.
This press release is neither an offer to sell nor the solicitation of an offer to buy the Notes or any other securities. The Notes and the underlying common stock issuable upon conversion have not been registered under the Securities Act or any applicable state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements. |
