Drillsearch Energy Limited
(ASX:DLS) shares have been placed in a trading halt as the group commences a convertible bonds issue to repay existing debt facilities.
The oil and gas explorer says its shares will remain halted until the outcome of its convertible bonds issue is known.
The group has launched an offering to raise a minimum of $US100 million, with a US$25 million upsize option, of senior, unsecured, guaranteed convertible bonds due September 2018.
The proceeds of the issue will be used to repay the $100 million debt facility provided by the Commonwealth Bank of Australia
(ASX:CBA) to fund Drillsearch's acquisition of Acer Energy and for general corporate purposes.
The convertible bonds are being offered to institutional investors, primarily in the Asian and European markets.
Drillsearch reported a net loss of $3.37 million for the first half of the 2013 financial year.
