Triangle issues convertible bonds to support Pase PSC project

Australian listed energy company Triangle Energy (Global) Ltd said it has decided to issue convertible unsecured notes (bonds) to Standard Chartered Private Equity (Singapore) Pte Ltd (SCPE).

The proceeds of the bonds issuance will be used to support the development of its Pase PSC in Aceh. The company is currently seeking for renewal of the PSC for 20 years to the government.

SCPE is a wholly owned private equity arm of Standard Chartered Bank. The convertible note issue comprises a first tranche of US$3.5 million and a second tranche of US$6.5 million.

The first tranche is expected to be issued this week. The second tranche will be subject to a number of conditions, including Triangle Energy shareholder approval (under ASX Listing Rule 7.1), FIRB approval and Pase PSC renewal conditions.

The maturity date for the notes is 3 years from the date of issue of the first tranche. The notes are convertible into ordinary shares in the capital of Triangle Energy at a conversion price of A$0.03 per share (subject to standard adjustment mechanisms) representing a 20 percent premium to yesterday?s closing price for TEG shares. A coupon rate of 8 percent per annum is payable annually in arrears.

The board of Triangle Energy considers this transaction with SCPE as ?extremely positive? for Triangle Energy and brings a number of benefits to Triangle Energy including enabling the company to continue with the development of the Pase field and exploration on the Pase PSC area.

?This is the first of several value-enhancing steps being taken to transform Triangle Energy into a leading, upstream oil and gas developer focused in Indonesia,? says company Executive Chairman John Towner. (romel)