Home » NEWS » Real Estate & Construction » Callon extends exchange offer

Callon extends exchange offer

NATCHEZ — Callon Petroleum Company announced an extension of the exchange offer and consent solicitation for its outstanding 9.75 percent senior notes due 2010 made pursuant to the exchange offer commenced Oct. 20.

Callon has been advised that 91.6 percent of the aggregate principal amount of its outstanding senior notes have been tendered.

Under the exchange offer, for each $1,000 principal amount of outstanding senior notes tendered in accordance with the terms and conditions of the exchange offer and accepted by Callon, each tendering holder of senior notes will receive $750 principal amount of 13 percent senior secured notes due 2016 (exchange notes), 20.625 shares of common stock and 1.6875 shares of convertible preferred stock. Each share of convertible preferred stock will be automatically convertible by the company into 10 shares of common stock following shareholder approval of, and the filing of, an amendment to the company’s charter increasing the number of authorized shares of common stock as necessary to accommodate such conversion. In addition, the exchange notes will be secured by a second lien on substantially all of the company’s oil and gas properties until such time as certain conditions are met. Callon is also soliciting consents to amend the indenture governing the senior notes to eliminate substantially all of the indenture’s restrictive covenants.

The exchange offer is being amended to extend the expiration date from 4 p.m. CDT Nov. 18 to 4 p.m., CDT Nov. 23. The exchange offer was amended to allow time to complete the qualification of the indenture for the exchange notes under the Trust Indenture Act.

About Wally Northway

Leave a Reply

Your email address will not be published. Required fields are marked *