Transmeridian Completes Consent Solicitation
Tuesday May 23, 6:02 pm ET
HOUSTON, May 23, 2006 (PRIMEZONE) -- Transmeridian Exploration Incorporated (AMEX:TMY - News) announced today the completion by Transmeridian Exploration Inc., the Company's wholly-owned British Virgin Islands subsidiary (``TMEI''), of TMEI's previously-disclosed consent solicitation with respect to TMEI's $250 million of outstanding Senior Secured Notes due 2010 (the ``Notes''). Pursuant to the consent solicitation, TMEI solicited consents to certain proposed amendments to the indenture pursuant to which the Notes were issued, including amendments to permit (i) the issuance under the indenture of additional Senior Secured Notes due 2010 in an aggregate principal amount of up to $40 million and (ii) the payment of accrued dividends on the Company's outstanding Series A cumulative convertible preferred stock in an amount not to exceed $1 million. Adoption of the proposed amendments requires consents from the holders of at least a majority in aggregate principal amount of the Notes.
ADVERTISEMENT
As of 5:00 p.m., New York City time, on May 22, 2006, the expiration time of the consent solicitation, TMEI had received consents from the holders of a majority in aggregate principal amount of the Notes. Accordingly, the requisite consents to adopt the proposed amendments to the indenture pursuant to which the Notes were issued have been received and a supplemental indenture setting forth the proposed amendments will be executed on or about May 24, 2006. The supplemental indenture and the proposed amendments provided for therein will become effective only upon the consummation of the Company's previously-disclosed private offering of additional Senior Secured Notes due 2010 of TMEI and shares of the Company's common stock, which is expected to occur on or about May 26, 2006. This press release is for informational purposes only and shall not constitute an offer to sell or a solicitation of an offer to buy any securities.
