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|Warren Resources Calls for Full Redemption of Outstanding 12% Sinking Fund Convertible Bonds due December 31, 2017|
New York, NY, January 13, 2005 ? /PR Newswire/ - Warren Resources, Inc. (Nasdaq:WRES) today announced that the company has elected to fully redeem before maturity its 12% Sinking Fund Convertible Bonds due December 31, 2017, at their regular redemption price of 106% of the principal amount thereof ($1,060.00 per $1,000.00) plus accrued interest to the redemption date of March 31, 2005 (the "Redemption Date").
All interest on Bonds called for redemption will cease to accrue on and after the Redemption Date of March 31, 2005.
The redemptions are being made under terms of the Bonds, which permit the Company to redeem them prior to maturity. Notice of redemption is being mailed to bondholders of record on January 13, 2005.
At any time prior to the close of business on the Redemption Date, bondholders may exercise their right to convert their Bonds into shares of the Company?s common stock at the conversion rate of 50 shares of the Company?s Common Stock per $1,000 Principal Amount at Maturity ($20 per share). The Bonds may be converted using the address of the Paying Agent shown below.
The remaining aggregate principal amount outstanding of the Bonds is approximately $5.1 million. As a result of the redemption, U.S. Treasury securities having a fair market value of $0.8 million being held in escrow by the trustee to secure repayment of the Bonds will be released to the Company.
Mr. Norman Swanton, the Chairman and Chief Executive Officer of the Company noted that ?the retirement and redemption of both our outstanding 12% Sinking Fund Convertible Bonds due 2017 and our outstanding 12% Sinking Fund Bonds due 2007, having a combined outstanding balance of $14.1 million, will cause the release to us of $4.9 million in U.S. Treasury securities securing the bonds and will eliminate approximately $1.7 million per year in interest payments and an estimated $1.5 million per year in sinking fund principal payments, all of which will result in increased cash flow and net income for our company.?
American Stock Transfer & Trust Company, New York, is the redemption paying agent and trustee.
Payment of the Redemption Price on the Bonds called for redemption will be paid only upon presentation and surrender thereof by Bondholders along with a letter of transmittal in the following manner:
American Stock Transfer and Trust Company
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