ASX Code: LNC OTCQX Code: LNCGY ASX Announcement 28 March 2013 LINC ENERGY SUCCESSFULLY RAISES US$200 MILLION IN CONVERTIBLE BONDS ISSUE • Linc Energy has successfully raised US$200 million by issuing convertible bonds tradable on the SGX • The Bonds convert at A$3.40 per share, representing a premium of 27.5% to the closing share price on 26 March 2013 • The proceeds from the Bonds will be used to pay down existing debt at the parent level, provide working capital and support the commercialisation of the Company's key assets Linc Energy (ASX: LNC; OTCQX: LNCGY) is pleased to announce it has successfully raised US$200 million through the issue of senior, unsecured Convertible Bonds due in 2018 (Bonds). Linc Energy will use the proceeds to pay down existing indebtedness at the parent level and to strengthen its balance sheet. The Bonds will support and de-risk the commercialisation of the Company's key assets and provide working capital for at least the next 3 years. Peter Bond, Chief Executive Officer, said, “The additional funding gives us the flexibility to accelerate the development of our energy portfolio. It allows us the option to minimise third party equity in our existing projects such as Umiat or sub salt (on-shore) drilling in Texas, or to increase our equity participation in various UCG joint ventures. The Bonds provide us with low cost funding, which minimises the dilution for existing shareholders. I'm confident that by completing this offering the Company now has a clear pathway for developing its key assets to the next stage of operational and financial maturity.” Under the terms of the offering Linc Energy has the option to cash settle the Bonds in lieu of issuing shares on conversion and has also retained its ability to access debt markets to fund future development of its US Oil & Gas business if required. Credit Suisse (Hong Kong) Limited is the lead manager for the offering. Details of the Convertible Bonds The Bonds will rank as unsubordinated, unsecured obligations of Linc Energy and are intended to be listed on the Singapore Exchange Securities Trading Limited (SGX-ST). The Bonds, which have a five (5) year maturity date, are convertible into ordinary shares of Linc Energy at the election of bondholders at any time and are non-callable for a period of 2 years. The Bonds have a fixed exchange rate of US$1.0463 per AU$1.00 and are convertible at a price of A$3.40 per share (subject to certain adjustments), which reflects a premium of 27.5% to the ASX Code: LNC OTCQX Code: LNCGY Media contact: Belinda Taylor | GM Corporate Communications e: [email protected] - 2 - ASX Announcement continued… share closing price on 26 March 2013. The Bonds have a coupon of 7% per annum, payable semi-annually in arrears. The Company may seek to increase the Bonds by up to US$50 million. The Bonds have been offered to institutional investors, primarily in the Asian and European markets. The offering was conducted outside the United States in accordance with Regulation S under the US Securities Act of 1933, as amended, and will not be registered under the US Securities Act. Summary of Key Dates Event Date Convertible Bond Bookbuild Offer opened and closed after Australian market close 27 March 2013 Results of Convertible Bond Offer announced 28 March 2013 Final Convertible Bond Offering Circular lodged 3 April 2013 Convertible Bond settlement and listing on the SGX 10 April 2013 Note: All dates are indicative only. Linc Energy reserves the right to alter these dates without prior notice. ASX Code: LNC OTCQX Code: LNCGY Media contact: Belinda Taylor | GM Corporate Communications e: [email protected] - 3 - ASX Announcement continued… Company Profile Linc Energy is focused on both conventional and unconventional oil and gas production. The Company owns a diverse and world-class commodity portfolio that includes oil, gas, shale and coal. Conventional oil and gas is focused onshore USA (Alaska, Texas, Louisiana and Wyoming) with current production expected to grow significantly from the Company’s existing reserves. Unconventional oil and gas is focused on our world leading capability in Underground Coal Gasification, the process of converting coal into a valuable synthetic gas in situ. Linc Energy has constructed and commissioned the world’s only UCG to GTL demonstration facility. The Company also owns and operates the world’s only commercial UCG operation in Uzbekistan, which supplies syngas to a nearby power station. Linc Energy is listed on the ASX (Australia) and the OTCQX (USA).
LNC Price at posting:
$2.67 Sentiment: Buy Disclosure: Held
