BPZ Energy Announces Closing of Convertible Senior Notes Transactions
Houston, Sept. 24, 2013 (GLOBE NEWSWIRE) -- BPZ Resources, Inc., (NYSE: BPZ)
(BVL: BPZ), today announced the closing of its offering of $125.0 million
principal amount of 8.50% Convertible Senior Notes due September 2017 (the
"2017 Notes") as well as the repurchase of $85.0 million of its outstanding
6.50% Convertible Senior Notes due March 2015.
The Company also granted the underwriters a 30-day option to purchase an
additional $18.8 million of the 2017 Notes. In addition, the International
Finance Corporation (IFC) holds the right to participate in the offering for
up to 45 days after being notified of the terms of the offering, which, if
exercised, would increase the size of the offering.
The Company intends to use the remaining proceeds after repurchases of
outstanding notes for general corporate purposes, including to fund its
exploration and production efforts or other projects or to reduce or refinance
its outstanding debt. The Company will also use cash on hand following the
closing of the offering to repay the remaining $36.0 million balance under its
secured bank debt facility.
The notes will be convertible by holders under certain circumstances and
during certain periods into shares of the Company's common stock at an initial
conversion rate of 249.5866 shares of common stock per $1,000 principal amount
of notes, which is equivalent to an initial conversion price of approximately
$4.01 per share of common stock, subject to adjustment. Upon conversion,
holders will receive, at the Company's discretion, cash, shares of the
Company's stock, or a combination thereof.
The 2017 Notes were issued via an underwritten public offering, resulting in
net proceeds of approximately $31.3 million, after repurchases of outstanding
notes and estimated offering expenses. Interest on the 2017 Notes will be
paid semi-annually on April 1 and October 1 of each year.
Raymond James & Associates, Inc. acted as sole book-running manager of this
offering. The 2017 Notes offering was made only by means of a prospectus,
forming a part of the Company's effective shelf registration statement,
related prospectus supplement and other related documents. You may obtain
these documents at no cost by visiting EDGAR on the Securities and Exchange
Commission website at www.sec.gov. Alternatively, copies of the prospectus
supplement and accompanying prospectus relating to this offering may be
obtained from Raymond James & Associates, Inc., 880 Carillon Parkway, St.
Petersburg, FL 33716, Attention: Equity Syndicate (telephone: 800-248-8863 or
This press release is neither an offer to sell nor a solicitation of an offer
to buy any of these securities and shall not constitute an offer, solicitation
or sale in any jurisdiction in which such offer, solicitation or sale is
Houston-based BPZ Energy, which trades as BPZ Resources, Inc. under ticker
symbol BPZ on the New York Stock Exchange and the Bolsa de Valores in Lima, is
an independent oil and gas exploration and production company which has
license contracts covering approximately 2.0 million net acres in offshore and
onshore Peru. The Company holds a 51% interest in offshore Block Z-1, which
it is developing in partnership with Pacific Rubiales Energy Corp. BPZ Energy
also holds 100% working interests in three onshore blocks in Peru. Please
visit the Company's website at www.bpzenergy.com for more information.
FORWARD LOOKING STATEMENT
This Press Release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These forward looking statements are based on our current expectations about
our company, our properties, our estimates of required capital expenditures
and our industry. You can identify these forward-looking statements when you
see us using words such as "anticipates," "intends," "will," "expects," and
other similar expressions. These forward-looking statements involve risks and
Our actual results could differ materially from those anticipated in these
forward looking statements. Such uncertainties include the success of our
project financing efforts, accuracy of well test results, results of seismic
testing, well refurbishment efforts, successful production of indicated
reserves, satisfaction of well test period requirements, receipt of all
required permits, the successful management of our capital expenditures, and
other normal business risks. We undertake no obligation to publicly update
any forward-looking statements for any reason, even if new information becomes
available or other events occur in the future.
CONTACT: A. Pierre Dubois
Investor Relations & Corporate Communications
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