Bellatrix Exploration Ltd. Announces Notice of Redemption of Debentures
TSX, NYSE MKT: BXE
CALGARY, Sept. 4, 2013 /CNW/ - Bellatrix Exploration Ltd. ("Bellatrix" or the "Company") (BXE-TSX) is pleased to announce that today it is issuing a notice of
redemption to holders of its currently outstanding $55.0 million 4.75%
Convertible Unsecured Subordinated Debentures due April 30, 2015 (the "Debentures"). As set out in the notice of redemption, the redemption date of the
Debentures will be October 21, 2013 (the "Redemption Date"). The Debentures are redeemable for an amount (the "Redemption Price") equal to principal amount of the Debentures plus accrued unpaid
interest up to, but excluding, the Redemption Date.
Pursuant to the terms of the Debentures, the Company has elected to
satisfy its obligation to pay all of the Redemption Price by issuing
and delivering to the holders that number of common shares of the
Company (the "Common Shares") obtained by dividing the Redemption Price by 95% of the current
market price of the Common Shares on the Redemption Date. For this
purpose, the current market price will be calculated based on the
volume weighted average trading price of the Common Shares on the
Toronto Stock Exchange (the "TSX") for the 20 consecutive trading days ending on the fifth trading day
preceding the Redemption Date. The Company anticipates announcing the
current market price to be used to calculate the number of Common
Shares that each holder of Debentures will receive on the redemption of
the Debentures on or about October 15, 2013.
Prior to the redemption of the Debentures, each holder will have the
right to convert their Debentures into Common Shares at a conversion
price of $5.60 per Common Share (the "Conversion Price") at any time on or prior to October 18, 2013. A holder electing to
convert the principal amount of their Debentures will receive 178
Common Shares for each $1,000 principal amount of Debentures converted
plus a cash payment for accrued unpaid interest up to, but excluding,
the Conversion Date. No fractional shares will be issued on redemption
or conversion but, in lieu thereof, the Company shall pay the cash
equivalent thereof determined on the basis of the current market price
of the Common Shares on the Redemption Date or conversion date, as
applicable (less any tax required to be deducted, if any).
As the Debentures were issued in "book-entry only" form and are held by
CDS Clearing and Depository Services Inc., beneficial holders of
Debentures must contact their broker, dealer, bank, trust company or
other nominee to exercise their right to convert their Debentures.
Beneficial holders who intend to convert their Debentures should ensure
that they contact their broker, dealer, bank, trust company or other
nominee well in advance of the Redemption Date to ensure that they
understand the procedure required to exercise their right of
conversion. All holders of Debentures who fail to deliver a notice of
conversion on or prior to October 15, 2013 (or such other earlier time
as may be indicated by their broker, dealer, bank, trust company or
other nominee) shall have their Debentures redeemed on the Redemption
Date and shall receive that number of Common Shares obtained by
dividing the Redemption Price by 95% of the current market price of the
Common Shares on the Redemption Date
Bellatrix Exploration Ltd. is a Western Canadian based growth oriented
oil and gas company engaged in the exploration for, and the
acquisition, development and production of oil and natural gas reserves
in the provinces of Alberta, British Columbia and Saskatchewan. Common
shares and convertible debentures of Bellatrix trade on the TSX under
the symbols BXE and BXE.DB.A, respectively and the common shares of
Bellatrix trade on the NYSE MKT under the symbol BXE.
All amounts in this press release are in Canadian dollars unless
otherwise identified.
Forward looking statements: Certain information set forth in this news
release, including the expected timing for announcing the current
market price to be used to calculate the number of Common Shares that
each holder of Debentures will receive on the redemption of the
Debentures may contain forward-looking statements, and necessarily
involve risks and uncertainties, certain of which are beyond
Bellatrix's control. Actual results, performance or achievements could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be given
that any events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits that
Bellatrix will derive therefrom. Additional information on these and
other factors that could affect Bellatrix are included in reports on
file with Canadian securities regulatory authorities and the United
States Securities and Exchange Commission and may be accessed through
the SEDAR website (www.sedar.com), the SEC's website www.sec.gov or at Bellatrix's website www.bellatrixexploration.com. Furthermore, the forward-looking statements contained in this news
release are made as of the date of this news release, and Bellatrix
does not undertake any obligation to update publicly or to revise any
of the included forward looking statements, whether as a result of new
information, future events or otherwise, except as may be expressly
required by applicable securities law.
SOURCE: Bellatrix Exploration Ltd.
Raymond G. Smith, P.Eng., President and CEO (403) 750-2420
or
Edward J. Brown, CA, Executive Vice President, Finance and CFO (403) 750-2655
or
Brent A. Eshleman, P.Eng., Executive Vice President (403) 750-5566
or
Troy Winsor, Investor Relations (800) 663-8072
Bellatrix Exploration Ltd.
Suite No. 1920, 800 - 5th Avenue SW
Calgary, Alberta, Canada T2P 3T6
Phone: (403) 266-8670
Fax: (403) 264-8163
(www.bellatrixexploration.com)
Copyright CNW Group 2013
Source: Canada Newswire
(September 4, 2013 - 8:00 AM EDT)
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