Destiny Announces Financing and Rights Offering.Business Editors CALGARY, ALBERTA--(BUSINESS WIRE)--April 13, 2000 DESTINY (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DSC (1) (Digital Signal Controller) A microcontroller and DSP combined on the same chip. It adds the interrupt-driven capabilities normally associated with a microcontroller to a DSP, which typically functions as a continuous process. See microcontroller and DSP. .) Destiny Resource Services Corp. ("Destiny") and First Reserve Corporation ("First Reserve") today announced that First Reserve has made a further investment in Destiny by way of a Private Placement completed on April 12, 2000. First Reserve lent the sum of $2,800,000 secured by a 13% convertible subordinated debenture subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before . The debenture may be converted to common shares at a price of $0.50 per share if not repaid in accordance with the terms of the debenture on or prior to September 29th, 2000. The purpose of the loan is to supplement working capital for the increased activity this spring and summer. At the same time Destiny announced that subject to receipt of required regulatory approvals, it intends to proceed with a rights offering to shareholders, the proceeds of which will be used to repay the debenture. Under the proposed terms of the rights offering, each shareholder of record, as of record date to be announced To be announced (TBA) A contract for the purchase or sale of an MBS to be delivered at an agreed-upon future date but does not include a specified pool number and number of pools or precise amount to be delivered. after receipt of regulatory approval, will receive one right per share. Four rights will entitle the holder to purchase an additional common share of the Company at $0.50 per share. First Reserve and Adrian Erickson, the two largest shareholders of Destiny who together hold approximately 55% of the company's issued and outstanding shares, along with all directors and insiders of Destiny have indicated their intention to fully exercise their rights and to subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; at least their proportionate share of rights not exercised by others. Except for the foregoing, First Reserve has no present intention to further increase the beneficial ownership, control or direction over the securities of Destiny. Destiny is a Calgary based oilfield service company providing essential integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. to the oil and gas exploration and production industries in Canada and internationally. First Reserve Corporation is a private equity firm specializing in the energy industry. Founded in 1980, the firm currently manages a portfolio of energy holdings with a market value in excess of $1.5 billion. The firm is headquartered in Greenwich, Connecticut and also has offices in Houston, Texas and Denver, Colorado. Other First Reserve portfolio companies include National Oilwell Inc., Pride International Inc. and Superior Energy Services Superior Energy Services is an oil and gas company based in Harvey, Louisiana, USA with many other locations around the world. Inc. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion