HOUSTON, TEXAS–(Marketwired – Jan. 5, 2017) – Epsilon Energy Ltd. (TSX:EPS) (“Epsilon” or the “Corporation“), announces that it has commenced a consent solicitation and given notice of conditional redemption in respect of its 7.75% convertible unsecured subordinated debentures (the “Debentures“) due March 31, 2017 (the “Maturity Date“).
The consent solicitation seeks consent from the holders of the Debentures (the “Holders“) to amend certain provisions of the indenture for the Debentures (the “Indenture“) such that Epsilon can make early payment of the cash amount payable on the Maturity Date in respect of the Debentures, including the principal amount together with any accrued and unpaid interest thereon less any tax required by law to be deducted (the “Full Maturity Amount“).
Epsilon is soliciting consents from Holders to the proposed amendments to the Indenture (the “Indenture Amendments“) to provide for the payment of the Full Maturity Amount on all outstanding Debentures prior to the Maturity Date, as more fully described in the consent solicitation and upon the terms and subject to the conditions set out in the consent solicitation. If Holders representing at least 66-2/3% of the principal amount of all of the outstanding Debentures provide a consent to the Indenture Amendments on or prior to the January 30, 2017, Epsilon will make payment of the Full Maturity Amount on February 16, 2017. In the event the consent solicitation is successful, all current holders, including non-consenting holders, will be bound by the Indenture Amendments.
The consent solicitation and the consent form are available on Epsilon’s website at http://www.epsilonenergyltd.com.
About Epsilon Energy Ltd.
Epsilon Energy Ltd. is a North American natural gas development, production and midstream company with a current focus on the Marcellus Shale of Pennsylvania.