Amerada Hess Corporation Announces Closing of $600 Million Public Offering of Mandatory Convertible Preferred Stock
November 25 2003 - 5:24PM
PR Newswire (US)
Amerada Hess Corporation Announces Closing of $600 Million Public
Offering of Mandatory Convertible Preferred Stock NEW YORK, Nov. 25
/PRNewswire-FirstCall/ -- Amerada Hess Corporation today announced
that it has closed a $600 million offering of its Mandatory
Convertible Preferred Stock (12 million shares with a liquidation
preference of $50 per share). The Company also announced that the
underwriters have notified the Company of their intention to
exercise their option to purchase an additional $75 million (1.5
million shares) of the Company's Mandatory Convertible Preferred
Stock. The Mandatory Convertible Preferred Stock was issued
pursuant to Amerada Hess' shelf registration statement declared
effective by the Securities and Exchange Commission on November 14,
2003. Shares of the Mandatory Convertible Preferred Stock have an
annual dividend yield of 7.0 percent and a threshold appreciation
price of $60.20, which is 24 percent above the $48.55 closing price
of the common stock on November 19, 2003. The preferred stock will
mandatorily convert into Amerada Hess common shares on December 1,
2006. Net proceeds from the offering totaled approximately $581
million. In addition, net proceeds from the purchase of the
optional shares is expected to be approximately $73 million.
Proceeds from the offering and the purchase of the optional shares
will be used for general corporate purposes, including reduction of
debt. Separately, Amerada Hess has offered to purchase for cash up
to an aggregate $594 million in principal amount of certain of its
outstanding series of notes. Amerada Hess, headquartered in New
York, is a global integrated energy company engaged in the
exploration for and the production, purchase, transportation and
sale of crude oil and natural gas, as well as the production and
sale of refined petroleum products. Goldman, Sachs & Co. served
as sole book-running manager for the offering. Copies of the
prospectus and prospectus supplement related to the public offering
may be obtained from Goldman, Sachs & Co., Prospectus
Department, One New York Plaza, New York, NY 10004. Goldman, Sachs
& Co. is also serving as dealer manager for the Company's offer
to purchase up to $594 million of its outstanding debt. This
announcement does not constitute an offer to sell or a solicitation
of an offer to buy Mandatory Convertible Preferred Stock. The
Mandatory Convertible Preferred Stock will not be sold in any state
or jurisdiction in which such an offer, solicitation or sale would
be unlawful. Contact: Amerada Hess Corporation Jay Wilson (212)
536-8940 DATASOURCE: Amerada Hess Corporation CONTACT: Jay Wilson
of Amerada Hess Corporation, +1-212-536-8940
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