Amendments to terms of 9% Unsecured Convertible Notes Finalised
AED Oil Ltd (ASX Code: AED) last night agreed with the trustee of AED's US$21,217,500 9% convertible unsecured notes due 2012 listed on the Singapore Exchange (SGX-ST) amendments to the trust deed and terms and conditions in respect of those notes on the terms contemplated in AED's announcement to ASX and SGX on 5 January 2011, namely to:
- introduce two new put dates, 10 July 2011 and 10 January 2012, and
- permit the company to effect ex-gratia reductions to the exercise price for the notes, which the Company has elected to reduce to 55 cents.
Further, in order to give noteholders sufficient time in order to properly consider how to act upon their rights, AED and the trustee have agreed that the period for issue of a Put Exercise Notice (as defined in the note terms) be extended so that the last date for issue of such notice is the date 10 days prior to the relevant put date. Previously, Put Exercise Notices were required to be issued prior to the date 30 days prior to the relevant put date.
The amendments to the Note Terms take effect as of 18 January 2011.
AED is anticipating a period of much activity, and announced yesterday that the testing program on Brunei Block L commenced at the Lempuyang-1 well. This will be followed by testing at the Lukut-1 well.
As such, AED has been endeavouring to develop a capital management program that will provide funding to develop and maximise the potential of the portfolio of assets and provide a strong basis for increasing shareholder value.
As part of this capital management plan, AED announced the proposal for the above amendments to the terms of AED's US$21,217,500 9% convertible notes listed on SGX-ST on 5 January 2011 and also announced on 30 December 2010 that it had entered into a new US$20 million convertible note financing arrangement. The funds raised from the issue of the new convertible notes will be used primarily to finance Brunei costs including further exploration, well testing and phase 2 development activities in Brunei Block L, as well as other AED projects and developments. The outstanding conditions in relation to the issue of the first convertible note are expected to be finalised shortly and the first note will then be issued.
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