Providence to raise €42m for Celtic Sea drilling

PROVIDENCE Resources is to raise €42 million, via the placing of convertible bonds with institutional investors, to be invested on further developing its interests in the Gulf of Mexico and this summer’s planned Celtic Sea drilling phase off the south coast of Ireland.

The bonds — which have already been placed on both the IEX market in Dublin and London’s AIM market — are denominated in units of €100,000 and carry interest of 12% per annum and mature in July 2012.

Bond holders will also have the option to convert them into ordinary Providence shares at a price of 10c per share, any time on or after September 29 this year. The conversion price represents a 19% premium to the shares’ closing price on July 21 of this year, which was the date on which the company agreed the final terms of the bonds.