convertible-redeemable-preferred-shares

Convertible Redeemable Preferred Shares Offering for Energy Exploration in Turkey & Bulgaria regions Raises USD 40mil

HAMILTON, Bermuda, Nov. 09, 2016 (GLOBE NEWSWIRE) — TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE-MKT:TAT) (the “Company” or “TransAtlantic”) today announced the closing of its offering of 12.0% Series A Convertible Redeemable Preferred Shares (the “Series A Preferred Shares”) and the financial results for the quarter ended September 30, 2016, and provided an operations update. Additional information can be found on TransAtlantic’s website

Summary

  • On November 4, 2016, the Company issued 921,000 shares of newly designated Series A Preferred Shares.  Of the 921,000 Series A Preferred Shares issued, 815,000 shares were issued in exchange for $40.8 million aggregate principal amount of the Company’s outstanding 13.0% Convertible Notes due 2017 (the “2017 Notes”) and 106,000 shares were issued for gross proceeds of $5.3 million, resulting in collective gross proceeds of $46.1 million.
  • On October 13, 2016, the Company entered into a share purchase agreement with its joint venture partner, Valeura Energy Netherlands B.V. (“Valeura”), for the sale of its wholly-owned subsidiary, Thrace Basin Natural Gas (Turkiye) Corporation (“TBNG”), whereby Valeura will pay $22.0 million, subject to closing adjustments, to the Company in exchange for the transfer of all of the equity interests in TBNG.
  • Net loss from continuing operations decreased to $4.6 million for the third quarter of 2016, as compared to $6.5 million in the second quarter of 2016.
  • Adjusted EBITDAX from continuing operations for the third quarter of 2016 increased 27.2% to $12.8 million1 from $10.1 million in the second quarter of 2016.
  • TransAtlantic’s average daily net sales volumes from continuing operations were approximately 4,191 barrels of oil equivalent per day (“BOEPD”) (comprised of 3,674 barrels of oil per day (“BOPD”) and 3.1 million cubic feet of natural gas per day (“MMCFPD”)) in the third quarter of 2016, as compared to 4,335 BOEPD in the second quarter of 2016 (comprised of 3,620 BOPD and 4.3 MMCFPD) and 4,511 BOEPD in the third quarter of 2015 (comprised of 3,533 BOPD and 5.9 MMCFPD).
  • TransAtlantic’s seven-day average daily net wellhead production as of November 7, 2016 was approximately 4,400 BOEPD, comprised of 3,820 BOPD and 3.5 MMCFPD.

1 Adjusted EBITDAX from continuing operations is a non-GAAP financial measure. See the reconciliation and other information at the end of this press release.

PPM.net Offering Memorandum library is the source of preliminary prospectus, private offerings, subordinated note private offering, final prospectus and related securities offering document templates. Hundreds of private placement issuers, investment banks, securities industry research analysts and academic institutions utilize the PPM.net Library.

I want to secure membership to the PPM.net library!

Offering of Series A Preferred Shares

On November 4, 2016, the Company issued 921,000 Series A Preferred Shares in private placements under the Securities Act of 1933, as amended. Of the 921,000 Series A Preferred Shares, (i) 815,000 shares were issued in a private placement exchange offer (the “Exchange Offer”) to certain holders of the Company’s 2017 Notes, at an exchange rate of 20 Series A Preferred Shares for each $1,000 principal amount of 2017 Notes, and (ii) 106,000 shares were issued and sold in a private placement (the “Private Offering”) to certain holders of the 2017 Notes.  All of the Series A Preferred Shares were issued at a value of $50.00 per share. Gross proceeds from the Private Offering were $5.3 million, which will be used by the Company for general corporate purposes. After completion of the Exchange Offer, $14.3 million aggregate principal amount of the 2017 Notes remain outstanding.  The Company plans to use $4.3 million of the proceeds from the issuance of the Series A Preferred Shares to early redeem certain 2017 Notes, which will result in $10.0 million aggregate principal of the 2017 Notes outstanding.

  1. Malone Mitchell, 3rd, the Company’s Chief Executive Officer and the Chairman of its Board of Directors, stated, “We are pleased to complete the Series A Preferred Shares offering. With this transaction, the previously announced new term loan, and our entry into a share purchase agreement for the sale of Thrace Basin Natural Gas (Turkiye) Company (which is expected to close late 2016 or early 2017), we have completed the steps necessary to strengthen our company. We now look forward to resuming our corporate focus on the profitable expansion of our production and operations.”

About TransAtlantic

TransAtlantic Petroleum Ltd. is an international oil and natural gas company engaged in the acquisition, exploration, development and production of oil and natural gas. The Company holds interests in developed and undeveloped properties in Turkey and Bulgaria.

 

To continue reading, click here

 (NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.)

Convertible Redeemable Preferred Shares Offering