InterOil has taken another step to strengthen its financial situation by significantly reducing its long term debt.
The company has notified holders of its 8% convertible subordinated debentures that it will exercise its right to mandatorily convert all outstanding debentures into common shares.
It follows the shares trading on the NYSE at higher than $32.50 for a period of more than 15 days.
After the mandatory conversion, none of the 8% debentures will remain outstanding.
A total of 3,159,000 common shares will be issued to debenture holders.
Chief financial officer Collin Visaggio said the conversion marks another milestone achievement in the transformation of the company’s balance sheet.
“After the conversion has taken place early in June, the company’s long-term debt to total capitalisation ratio is expected to be reduced to 17% on a pro-forma basis,” he said.
“This will be significantly down from the 34% announced in our last financial report of March 31, 2009 and from 68% as of March 31, 2008.
“This is effectively a four-fold improvement in just fourteen months.”
The debentures were originally due in May 2013.
InterOil’s ability to undertake the conversion just a year after issue reflects the considerable strengthening of InterOil operational position during that time.
“It also reflects the market’s recognition of the value we continue to create.”
For further information please contact
Senior Manager Media Relations InterOil Corporation
Ph: (675) 321 7040