Pacific Rubiales Gets Nearly All Early Converts

Pacific Rubiales has converted CAD236m ($232m) of its convertible debentures via an early conversion offer that drew participation from holders of 98.9% of the 8% 2014 bonds. In the process it will issue 20.5m shares, of which 2m represent an incentive payment to accepting holders. For each CAD1,000 ($988) face value tendered, the Toronto-based Colombian producer offered face value in shares plus 86.7533 additional shares. This compares to the original conversion rate of 77.94 shares per CAD1,000 face value. The offer closed Tuesday. Pacific Rubiales says it is undertaking the offer “to bring maximum balance sheet flexibility to carry out its acquisition strategy. RBC managed the process.