GLOBAL NATURAL RESOURCES AND PRUDENTIAL INSURANCE COMPANY REACH AGREEMENT
GLOBAL NATURAL RESOURCES AND PRUDENTIAL INSURANCE COMPANY
HOUSTON, Nov. 21 /PRNewswire/ -- Global Natural Resources Inc. (NYSE: GNR) (the company) announced today that it has reached an agreement with The Prudential Insurance Company of America pursuant to which on Dec. 5, 1991, Prudential will give the company notice of its election to accept prepayment of all of the company's $50 million convertible subordinated notes due June 30, 1999, to convert all of the notes into shares of Series A Preferred Stock of the company, which is convertible into approximately 6,300,000 shares of common stock of the company, or to accept partial prepayment of the notes and to convert the remainder of the notes into shares of Series A Preferred Stock. If Prudential elects to accept prepayment of all or some of the notes, the company must notify Prudential on Dec. 6, 1991 of the principal amount to be repaid, which amount shall not be less than $20 million and shall be paid no later than Jan. 2, 1992.
The company also said that it had obtained a commitment letter from Texas Commerce Bank for a credit facility of up to $25 million, subject to a number of conditions including negotiation of definitive documentation, which could be used, together with the company's existing cash, to repay the notes.
Global Natural Resources Inc. is a Houston-based energy company engaged in the exploration, development and production of oil and gas in North America. The company also owns an interest in long-term oil and gas production sharing contracts in Indonesia and has joint venture projects in Tatarstan-USSR and Argentina.
/CONTACT: Eric Lynn Hill of Global Natural Resources, 713-880-5464/
(GNR) CO: Global Natural Resources Inc.; Prudential Insurance Company ST: Texas IN: OIL SU: FC -- NY075 -- 5937 11/21/91 13:31 EST