Petro Rio S.A. HRTPF

Estimate for the HRT debentures:

[Rzbern]

20.00 / [(average 10.67) - 25%] 

20.00 / 8.00 = 2.5 HRTP3 shares (resulting from the conversion of debentures) 

 

As previous posts: 4.5 million shares debentures x 2.5 = 11.25 million new shares arising from debentures converted.

current shares: 29,748,449 

current actions + converted debentures = 29,748,449 + 11,250,000 = 40,998,499 

 

shares converted debentures: 11.25 million (38% compared to current actions and 27% to total considering the incorporation of converted debentures). 

The current shareholders until October 24, 2014 and all GDS shareholders will have the position in the company HRT reduced to 73% from the current position.

[robnhood]

RZ, the way this reads to me , it could end up being a lot more shares than 11.25 million---- << 0.1. The number of Shares to be delivered to the Debenture holders on the Debenture Conversion Date will be the result of dividing the Par Value of the Debentures by the lesser of: (i) the weighted average, by daily volume, of the closing price of the

[robnhood]

Key words there are--- by the lesser of:

[Rzbern]

robnhood, this text in English that you presented [1] allows different interpretation to the text in Portuguese [2] that follows below. I think my counts are correct. The principal difference is: [1] (i) the weighted average, by daily volume, of the closing price of the Shares over the last 10 (ten) BM&FBOVESPA trading sessions as of the day after Issuance Date, with a discount of

[robnhood]

RZ, in English it says "the lesser"" Should HRTP3 be trading at 5$brl in one year then the conversion would be double the shares that it is at 10$brl.

[robnhood]

The teaser of course is, should it be trading at 20$brl one year from now, they still get conversion at 7.50 brl.

[Rzbern]

The value to be used in the calculation is the lesser of the following options, which are:    (i) - the weighted average of the daily volume, closing price of the Shares for the past ten (10) trading days on the BM & FBOVESPA, prior to October 27, 2014, the Applied discount of 25% (twenty five percent);      or    (ii) - the

[robnhood]

Drilla on IHUB says there is an additional 1 year hold if the debenture holders convert--- I am not so sure-- here's what it says << 21. Lock-up period for shares resulting from conversion: 21.1. The shares resulting from conversion will be subject to trading restrictions and transfer for a period of 12 (twelve) months from