Transmeridian Completes $250 Million Financing
Monday December 12, 5:08 pm ET
HOUSTON, Dec. 12, 2005 (PRIMEZONE) -- Transmeridian Exploration Incorporated (AMEX:TMY - News) today announced that it has completed a private placement of 250,000 Units consisting of $250 million in aggregate principal amount of senior secured notes due 2010 of Transmeridian Exploration, Inc. (TMEI-BVI), the company's wholly owned British Virgin Islands subsidiary, and detachable five-year warrants to purchase approximately 17.3 million shares of the company's common stock at an exercise price of $4.31 per share, subject to adjustment in certain circumstances. The notes bear interest at the rate of 12% per annum, are guaranteed by the company and certain of the company's subsidiaries, and are secured by pledges of the outstanding capital stock of TMEI-BVI and certain of the company's other subsidiaries.
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Proceeds from the private placement will be used to consummate the pending acquisition of Bramex Management, Inc., repay existing indebtedness and for other general corporate purposes.
The notes, the warrants and the common stock issuable upon exercise of the warrants have not been registered under the Securities Act of 1933 or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.
Transmeridian Exploration Incorporated (TMEI) is an independent energy company established to acquire and develop oil reserves in the Caspian Sea region of the former Soviet Union. TMEI primarily targets medium-sized fields with proved or probable reserves and significant upside reserve potential. Its first major project is the South Alibek Field in Kazakhstan and it is currently pursuing additional projects in the Caspian Sea Region.
