Newspaper article THE JOURNAL RECORD

Alexander Agrees to Restructure Long-Term Debt

Newspaper article THE JOURNAL RECORD

Alexander Agrees to Restructure Long-Term Debt

Article excerpt

An agreement for Alexander Energy Corp. to restructure long-term debt by selling $5 million in 10 percent senior notes to John Hancock Mutual Life Insurance Co. was announced Thursday.

Alexander Energy plans to use the $5 million it received from the sale to reduce the $6 million in long-term outstanding debt the company owes to Liberty National Bank and Trust Co. of Oklahoma City, according to the announcement made Thursday by Bob Alexander, president of Alexander Energy.

John Hancock also received warrants that expire in 1993 to purchase up to 670,000 shares of Alexander Energy common stock at $1 per share, according to the completed purchase agreement announced Thursday.

In over the counter trading Thursday, Alexander common stock closed at 15/16, unchanged.

John Hancock, a limited partner in the AEJH 1985 Limited Partnership with Alexander Energy, holds 314,735 shares of the energy company already, and has an option expiring in 1990 to purchase an additional 78,684 shares at $1 per share.

Alexander Energy's outstanding common shares currently total 7.3 million said David E. Grose, chief financial officer for Alexander Energy. An additional 696,000 issued shares are held in the company's treasury, he said. The company is authorized to issue 20 million common shares.

"This represents a major step which we expect to contribute significantly to our future financial results," said Bob Alexander. "We continue to be excited about our ongoing relationship with as sound an organization as John Hancock, and we are pleased with their continued confidence in us."

The oil and natural gas exploration and production company has 10 years to pay back John Hancock at a 10 percent fixed interest rate, with no payments on the principal debt for the first five years. …

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