Petroleum explorer and producer horizon oil has offered to buy back its US$80m 5.5% convertible bonds due 2016 to simplify its capital structure ahead of a merger with Roc Oil. On implementation of the merger, bondholders will be entitled to redeem their CBs at the early redemption amount of US$105 per US$100 of face value, but Horizon has offered to pay US$111.25 per US$100 of face value, plus accrued interest. This is a premium of 2% to the closing market price of the bonds on June 30. UBS led the original offering in 2011. Under the terms at issue, the bonds would redeem at 108.8 at maturity on June 17 2016.
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