Endeavour Announces Redemption and Amendment of Convertible Preferred Stock
November 17 2009 - 6:00PM
PR Newswire (US)
HOUSTON, Nov. 17 /PRNewswire-FirstCall/ -- Endeavour International
Corporation (AMEX:END) (LSE:ENDV) today announced that it has
signed an agreement to redeem $75 million of its $125 million
Series C Convertible Preferred Stock and amend the terms of the
remaining $50 million outstanding. The redemption and amendment
reduces the current dilution to common shareholders and eliminates
the potential dilution Endeavour common shareholders faced if
equity capital was utilized for value-added growth opportunities.
"We believe the redemption and amendment gives Endeavour additional
simplicity in its capital structure and financial flexibility to
create further avenues for growth by removing the dilution
uncertainty for our common equity," said William L. Transier,
chairman and chief executive officer. "Endeavour has not pursued
several potential business opportunities due to concerns about
dilution to our common shareholders. Our convertible preferred
stockholders also recognized the restrictive impact of the
anti-dilution provisions to our growth efforts. The ability to
accomplish this very positive transaction with our convertible
holders is a strong endorsement of our management team and the
underlying value of Endeavour." Endeavour's redemption of $75
million will include a $25 million cash payment and the issuance of
a five-year $50 million subordinated note payable, pre-payable at
anytime, bearing cash interest at an annual rate of 10 percent plus
two percent interest accruing in the balance of the note. It will
amortize over a four-year period beginning in 2011. The remaining
$50 million outstanding Series C Convertible Preferred Stock has
been amended to reduce the annual dividend rate to 4.5 percent from
8.5 percent, adjust the conversion price to $1.25 per share and
eliminate the previously included anti-dilution provisions.
Conference Call Tomorrow, Wednesday, November 18, 2009 at 9:00
a.m., Central Standard Time, 3:00 p.m. Greenwich Mean Time
Endeavour will host a conference call and web cast tomorrow 9 a.m.
Central Standard Time and 3 p.m. Greenwich Mean Time on Wednesday,
November 18, 2009 to discuss the terms of the transaction more
fully. To participate in the conference call, dial the local
country telephone number and the confirmation code 3694365. The
toll-free numbers are 888-708-5691 in the United States and
0-808-101-1402 in the United Kingdom. Other international callers
should dial 913-312-0962 (tolls apply). To listen only to the live
audio webcast, access Endeavour's home page at
http://www.endeavourcorp.com/. A replay will be available beginning
at 12:00 p.m. Central Time on November 18 through 12:00 p.m.
Central Time on November 25 by dialing toll-free 888-203-1112
(U.S.) or 719-457-0820 (tolls apply) (international), confirmation
code 3694365. Endeavour International Corporation is an oil and gas
exploration and production company focused on the acquisition,
exploration and development of energy reserves in the North Sea and
the United States. For more information, visit
http://www.endeavourcorp.com/. Certain statements in this news
release should be regarded as "forward-looking" statements within
the meaning of the securities laws. These statements speak only as
of the date made. Such statements are subject to assumptions, risk
and uncertainty. Actual results or events may vary materially.
DATASOURCE: Endeavour International Corporation CONTACT: Investor
Relations of Endeavour International Corporation, Mike Kirksey, +44
(0) 207-451-2364, +1-713-307-8788; or Jeffrey Auld, United Kingdom
Broker of Canaccord Adams, +44 (0) 207 050 6500; or UK Media,
Philip Dennis, +44 (0) 207 743 6363, or Henry Lerwill, +44 (0) 203
178 6242, both of Pelham Public Relations, all for Endeavour
International Corporation Web Site: http://www.endeavourcorp.com/
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