SPOKANE, WA, June 21, 2012 /CNW/ - Gold Reserve Inc. (TSX VENTURE:GRZ)
(NYSE-MKT:GRZ) (the "Company") announced today the expiration and final
results of its previously announced offer regarding the Notice of Right
of Repurchase for its 5.50% Senior Subordinated Convertible Notes due
2022 (the "Notes"), which offer expired at 5:00 p.m., New York City
time, on June 15, 2012.
As required by the Indenture (the "Indenture"), dated May 18, 2007, by
and among the Company and The Bank of New York Mellon, as successor in
interest to The Bank of New York, as Trustee ("Trustee") and the
Co-Trustee named therein, the Company offered (the "Offer") to each
holder of the Notes ("Holder") the right to sell (the "Put Option"),
upon the terms and subject to the conditions set forth in the
Indenture, the Notes, for cash, to the Company. At the time of the
Offer, an aggregate of $102,347,000 in principal amount of Notes were
The paying agent for the Offer has advised the Company that as of the
expiration of the Put Option, $18,036,000 in principal amount of
outstanding Notes have been validly tendered and not validly withdrawn.
In accordance with the terms of the Offer, the Company has accepted all
of the tendered Notes that were not validly withdrawn for payment of
cash equal to the outstanding principal amount, plus accrued and unpaid
interest up to, but not including, June 15, 2012.
Pursuant to its previously announced agreement with three Holders (the
"Large Noteholders") of approximately $77,187,000 in principal amount
of Notes remaining outstanding after the expiration of the Offer, the
Company intends to restructure the Notes held by such Holders
("Restructuring") and offer to Holders of the remaining outstanding
Notes an opportunity to participate in the Restructuring as soon as
reasonably practicable but no sooner than 10 business days after the
expiration of the Offer, subject to applicable legal requirements and
compliance with the terms of the Indenture.
Following completion of the Restructuring transactions, the Company
intends to redeem all Notes that have not been repurchased pursuant to
the Put Option or restructured pursuant to the Restructuring as soon as
practicable, subject to applicable legal requirements and compliance
with the terms of the Indenture.
For further information please refer directly to the Schedule TO
Amendment No. 3 and all other related filings for further details at www.goldreserveinc.com, www.sedar.com or www.sec.gov.
"Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release."
SOURCE Gold Reserve Inc.
For further information:
A. Douglas Belanger
Gold Reserve Inc.