As the Harvest Energy debenture agreement requires them to repurchase them at 101 cents on the dollar within 30 days of a change of control, Harvest Energy has made the offer today. The expiration of the offer is as follows:
Series Trading Symbol Expiry Date ---------------------------------------------------------------------------- 6.50% Debentures due 2010 TSX: HTE.DB.B March 4, 2010 6.40% Debentures due 2012 TSX: HTE.DB.D February 11, 2010 7.25% Debentures due 2013 TSX: HTE.DB.E March 4, 2010 7.25% Debentures due 2014 TSX: HTE.DB.F February 25, 2010 7.50% Debentures due 2015 TSX: HTE.DB.G February 25, 2010 7 7/8% Senior Notes due 2011 N/A February 16, 2010
An investor should look at the market price of the debentures before considering to tender and also look at the yield they would get by holding onto the debentures vs. the risk they would have to take until they mature. Right now all of the debentures are trading above 101, which likely means they will not be tendered by investors – they can be dumped on the open market for a higher price. I dumped my “D” debentures at 101.5 and my “E” debentures at 102.0 in January in a lucky feat of trading execution.