CALGARY, Alberta, Nov. 19, 2018 (GLOBE NEWSWIRE) — Toscana Energy Income Corporation (“Toscana” or the “Corporation”) (TSX: TEI) announces that the Toronto Stock Exchange (the “TSX“) has advised Toscana that its 7.25% convertible unsecured subordinated debentures due December 31, 2021 (the “Debentures“) will commence trading on an interest flat basis on November 20, 2018.
On November 16, 2018, the Corporation has called an extraordinary meeting of its holders of Debentures (the “Debentureholders“) to be held on December 14, 2018 at which the Debentureholders will consider, and if deemed advisable, pass an extraordinary resolution to approve the deferral (the “Deferral“) of the interest payment due and payable by Toscana to Debentureholders of record on December 31, 2018 under the terms and conditions of the trust indenture between the Corporation and Valient Trust Company (which was acquired by Computershare Trust Company of Canada) (the “Debenture Trustee“) dated as of the 11th day of June, 2013 and as amended on the 23rd day of April, 2018 (the “Indenture“). In consideration for the Deferral, the Corporation proposes to make an aggregate payment in the amount of $825,000, such payment to be made in two equal payments by Toscana to the Debenture Trustee for the benefit of Debentureholders of record as at September 30, 2019 and April 30, 2020, respectively, on and in accordance with the terms of the Indenture, and such payment being comprised of: (i) $725,000 in complete satisfaction of the interest payment due to Debentureholders of record on the applicable interest payment dates (the “Interest Payment“); and (ii) $100,000 as a lump sum fee in consideration for the deferral of the Interest Payment.
The TSX has advised the Corporation that as the TSX has no assurance that the Corporation will be in a position to pay interest on the Debentures on the next interest payment date of June 30, 2019, all trades in the Debentures will commence trading at the opening of the markets on November 20, 2018 on an interest flat basis until further notice. The TSX has advised that it will not report accrued interest regarding any trades made on an interest flat basis to its participating organizations.
About Toscana Energy Income Corporation
Toscana Energy Income Corporation is a conventional oil and gas producer with the mandate to acquire high quality, long life oil and gas assets including royalties, non-operated working interests and unitized production for yield and capital appreciation.