By John Lee.
Paulson & Co, the hedge fund run by John Paulson (pictured), has bought Cdn$70 million [$68.6 million USD] of WesternZagros 4.00% Convertible Senior Unsecured Notes ("Convertible Notes").
A portion of the proceeds from the Private Placement have been used to repay the remaining Crest Energy International ("Crest") debt of US$44.5 million plus accrued interest as per the terms of the loan agreement. The remaining proceeds will be used to fund the Company's capital and operating activities.
Simon Hatfield, WesternZagros's Chief Executive Officer commented:
"We are pleased to close this financing with Paulson. The funding provides Convertible Notes with a maturity date beyond that in the Crest loan and additional capital to finance a portion of additional exploration activities or pre-development activities the company pursues in 2014."
The Convertible Notes have a face value of Cdn$1,000 per note, a coupon of 4 percent, a maturity date of December 31, 2015 and will be convertible into common shares of the Company ("Common Shares") at the option of the holder at a conversion price of Cdn$1.45 per share (subject to adjustment in certain events), representing a conversion premium of approximately 27 percent to the thirty day average price for the Common Shares.