DENVER, Sept. 20 /PRNewswire-FirstCall/ -- Gasco Energy (NYSE Amex: GSX) (the "Company") today announced that as of 5:00 p.m., Eastern time, today (the "Automatic Conversion Date") the Company will effect the automatic conversion of a portion of the outstanding principal amount of the Company's outstanding 5.50% Convertible Senior Notes due 2015 (the "Notes"). As of the Automatic Conversion Date, Notes in an aggregate principal amount of $64,532,000 were outstanding.
On the Automatic Conversion Date, an aggregate principal amount of Notes equal to thirty percent (30%) of the aggregate principal amount of outstanding Notes shall convert automatically into that number of fully paid and non-assessable shares of the Company's Series C Convertible Preferred Stock obtained by multiplying the principal amount of the Notes to be so converted by 0.01579, such that each $1,000 of Notes to be converted shall be converted into 15.79 shares of Series C Convertible Preferred Stock (the "Automatic Conversion"). The Automatic Conversion shall be made on a pro rata basis with reference to the aggregate principal amount held by all holders of the Notes on the Automatic Conversion Date, rounded up to the amount of $1,000 in principal amount on a holder-by-holder basis.
DTC participants that beneficially own the Notes as of 5:00 p.m., Eastern time, on September 20, 2010 are instructed to submit an appropriate DWAC withdrawal and DWAC deposit on Tuesday, September 21, 2010, by no later than 5:00 p.m., Eastern time.
Interest on the portion of Notes being converted in the Automatic Conversion shall accrue through the Automatic Conversion Date and shall be paid within the time period set forth in the Indenture governing the Notes to holders of record on the Automatic Conversion Date. After the Automatic Conversion Date, the Notes that were converted shall no longer be deemed to be outstanding and shall cease to accrue interest.