BPZ Energy Announces Pricing Of Convertible Senior Notes Transactions

Houston, Sept. 19, 2013 (GLOBE NEWSWIRE) -- BPZ Resources, Inc., (NYSE: BPZ) (BVL: BPZ), today announced that it has priced an offering of approximately $125.0 million of 8.50% Convertible Senior Notes due 2017 (the "2017 Notes").  The Company expects to use the proceeds from the issuance of the 2017 Notes to repurchase and retire $85.0 million of its existing $170.9 million principal amount of 6.50% Convertible Senior Notes due 2015 in individually negotiated transactions, on potentially varying terms, and for general corporate purposes, including to fund its exploration and production efforts or other projects or to reduce or refinance its outstanding debt or other corporate obligations.

The Company also currently intends to use cash on hand following the offering to repay the remaining $36 million balance under its secured bank debt facility.

The Company also granted the underwriters a 30-day option to purchase an additional $18.8 million of the 2017 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. The Company expects to close the offering of the 2017 Notes on or about September 24, 2013, subject to the satisfaction of customary closing conditions.

The 2017 Notes are to be issued via an underwritten public offering, resulting in expected net proceeds of approximately $31.3 million, after repurchases and estimated offering expenses.  Interest on the 2017 Notes will be paid semi-annually on April 1 and October 1 of each year.  The notes will be 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.

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