Houston, Sept. 30, 2013 (GLOBE NEWSWIRE) -- BPZ Resources, Inc., (NYSE: BPZ) (BVL: BPZ), today announced that Raymond James & Associates, Inc., as underwriter of the Company's previously reported offering of $125 million of its 8.50% Convertible Senior Notes due 2017 (the "Notes"), has exercised in full its option to purchase an additional $18.8 million aggregate principal amount of the Notes. In addition, the International Finance Corporation (IFC) holds the right to participate in the offering for up to 45 days after being notified of the terms of the offering, which, if exercised would increase the size of the offering.
Net proceeds from the sale of the Notes as a result of the option exercise, after deducting the discounts and offering expenses, were approximately $16.3 million. The Company closed the offering of these Notes under the underwriter's option on September 30, 2013. Expected use of proceeds includes general corporate purposes, including to fund its exploration and production efforts or other projects or to reduce or refinance its outstanding debt.
The Company also announced that it had repaid the remaining $36 million principal balance on its $40 million secured bank facility with Credit Suisse.Interest on the Notes will be paid semi-annually on April 1 and October 1 of each year. The Notes willbe convertible by holders under certain circumstances and during certain periods into shares of the Company's common stock at an initial conversion rate of 249.5866 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $4.01 per share of common stock, subject to adjustment. Upon conversion, holders will receive, at the Company's discretion, cash, shares of the Company's stock, or a combination thereof. Raymond James & Associates, Inc. acted as sole book-running manager of this offering. The 2017 Notes offering is being made only by means of a prospectus, forming a part of the Company's effective shelf registration statement, related prospectus supplement and other related documents. You may obtain these documents at no cost by visiting EDGAR on the U.S. Securities and Exchange Commission website at www.sec.gov. Alternatively, copies of the prospectus supplement and accompanying prospectus relating to this offering may be obtained from Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, FL 33716, Attention: Equity Syndicate (telephone: 800-248-8863 or email at the following address: prospectus@RaymondJames.com).