JED Oil Inc. Announces Note Redemption Extension
JED Oil Inc. (AMEX: JDO) (“JED” or the “Company”) today announced that it and a majority of the holders of its $40.24 million principal amount of 10% Senior Subordinated Convertible Notes (“Notes”), have signed a Note Amending Agreement to restructure the Notes and extend the maturity date for their redemption. Under the terms of the new agreement, the Company has until June 30, 2008 to complete the credit facility offered by a Canadian Chartered Bank in the approximate amount of $32 million. These funds will be used to repay 61% of the principal amount of the Notes; an addition of 1% of the principal amount and 400,000 common shares of JED as extension fees, plus all interest accrued from January 1, 2008 through the closing date in cash. The remaining balance of 39% of the principal amount will remain outstanding as amended and restated Notes. The amended Notes will pay quarterly interest in the amount of 12% per annum and will mature one year from the issue date. The interest will be payable in common shares of JED if required by the Company’s bank. Under the terms of the agreement, the Company will have the right to make prepayments at any time without penalty. In addition, JED will be required to make prepayments totaling half of the net value of proceeds from asset sales (after the bank has been repaid the loan value of the assets). The amended Notes may be converted at the holders’ option into common shares of JED at an exercise price of $1.25 per share.
