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Arcan Resources Ltd ARNBF



OTCPK:ARNBF - Post by User

Comment by Corrigan1on Mar 24, 2012 12:03pm
592 Views
Post# 19713449

RE: RE: More than correction.....meltdown

RE: RE: More than correction.....meltdown

although pengrowth did not use any of their bankline for their buy so they still could, I guess, come after arcan

I'm afraid that I'm going to have to disagree. Pengrowth stated in the press release that they would be making offers for NAL's debentures. Any and all payments to debenture holders will reduce their bankies with a gross potential of ($80M + $115M x 1.01) + $150M =  $346.95M. Plus, NAL had outstanding banklines of $185M on March 7 (see page 29 of their March presentation) so we're talking potential retirement of $532M of NAL debt coming straight from Pengrowth's banklines. With interest rates being at historic lows, they may have plans to term that out like the bulk of their own debt. Hope so anyway as I'm a Pengrowth shareholder.

 

NAL DEBENTURES

Under the Arrangement, Pengrowth will also assume all of the rights and obligations of NAL relating to: (i) the 6.75% convertible unsecured subordinated debentures of NAL maturing August 31, 2012, (the "2012 Debentures"); (ii) the 6.25% convertible unsecured subordinated debentures of NAL maturing December 31, 2014 (the "2014 Debentures"); and (iii) the 6.25% convertible unsecured subordinated debentures of NAL maturing March 31, 2017 (the "2017 Debentures") and, together with the 2012 Debentures and the 2014 Debentures the "NAL Debentures"). The conversion price of each class of NAL Debentures will be adjusted pursuant to the terms of the note indentures governing the NAL Debentures based on the Exchange Ratio. Following closing of the Arrangement, Pengrowth intends to make the requisite offers for the 2012 Debentures and 2014 Debentures at 101 percent of their principal amounts plus accrued and unpaid interest and for the 2017 Debentures at 100 percent of their principal amounts plus accrued and unpaid interest. The repurchase offers will be made within 30 days of closing of the Arrangement. Should a holder of the NAL Debentures elect not to accept the repurchase offer, the debentures will mature as originally set out in their respective indentures. Holders who convert their NAL Debentures following completion of the Arrangement will receive common shares of Pengrowth.

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