INTEROIL Corp (InterOil), the operator of the second proposed liquefied natural gas, yesterday announced it will hold a public offering of its convertible senior notes to raise funds for the proposed condensate stripping plant at the Elk/Antelope in Gulf province, The National reports.
The offer is subject to market and other conditions due 2015.
A statement released yesterday said: “InterOil intends to use the net proceeds from this offering, including the proceeds from any exercise of the over-allotment option, for the development and construction of a proposed condensate stripping plant and related facilities, a LNG plant and related facilities, other exploration and development activities, the repayment of the US$25 million (K66 million) loan with Clarion Finanz AG, which matures next January, and general corporate purposes.”
InterOil is authorised to raise gross proceeds of up to US$280 million (K741 million) from the combined offerings, including over-allotments.
InterOil has granted the underwriters of the offerings a 30-day option to purchase 15% of each security to cover over-allotments, if any.
Each offering will be made under the individual prospectus supplement to InterOil’s base shelf prospectus dated last Tuesday.
American companies Morgan Stanley & Co. Inc (MSCI) and Macquarie Capital (USA) Inc (MCI) will act as joint book-running managers on behalf of the underwriters for the common shares offering.
MSCI will act as the sole book-running manager and MCI will act as the joint lead manager on behalf of the underwriters for the convertible note offering.