Devon Energy Corp. (Amex: DVN), Oklahoma City, priced a private placement of 20-year zero-coupon convertible debt at $464.13 per debenture at closing. The issue is expected to produce approximately $346 million of net proceeds for the independent. Devon will use the money to pay existing debt and for general corporate purposes. The debt will reach an accreted value of $1,000 per debenture at maturity, representing a 3.875% annual yield. Each debenture also may be converted into 5.7593 shares of Devon common stock, representing a 40% premium to the stock's June 21 closing price of $57.5625 per share. This premium will accrete to approximately 70% by the first put date of June 27, 2005, the company said. It may call the debt after five years at a price equal to the issue price plus accrued original issue discount through the call date. Holders can "put" the debentures back to Devon (i.e., require Devon to repurchase debentures) on the fifth, 10th and 15th anniversaries of the issue date. CHC Helicopter Corp. (Nasdaq: FLYA), St. John's, Newfoundland, intends to privately offer 125 million Euros (approximately US$113.75 million) of senior subordinated notes due 2007 to qualified institutional buyers and non-U.S. investors, primarily in Europe. The offshore transportation services company said that it would use the money to reduce its outstanding bank debt and pay fees and expenses related to its August 1999 acquisition of Helicopter Services Group ASA. Miller Exploration Co. (Nasdaq: MEXP), Houston, received a commitment letter from Bank One, Texas for a 30-month reducing revolving term loan at prime plus 2%. The borrowing base under this new facility is $12.5 million, which will require the independent to raise $5 million in equity to pay down its existing bank debt. Miller Exploration's management said that it currently believes the commitment letter's conditions, including the required equity, can be satisfied prior to closing. The company requested a 30-day extension of its June 15 borrowing base redetermination from its existing senior lender, Bank of Montreal, to allow time for the necessary document preparation. The current outstanding balance with that senior lender is approximately $17.4 million.
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