PORTSMOUTH, N.H., March 16, 2005 (BUSINESS WIRE) — BayCorp Holdings, Ltd. (“BayCorp”) announced that it has closed a $10.25 million convertible debt financing with Sloan Group Ltd. The debt, which accrues interest at 8% and is due on December 15, 2005, is convertible at any time between November 15, 2005 and December 15, 2005 into shares of the Company’s common stock at a price of $14.04 per share.
The Company intends to use the proceeds from the financing to continue the development of natural gas and oil wells in East Texas under its Project Development Agreement with Sonerra Resources Corporation and for other strategic and general corporate purposes.
BayCorp Holdings, Ltd. is an unregulated holding company incorporated in Delaware. BayCorp currently has five wholly owned subsidiaries including Great Bay Power Marketing, Inc., which purchases and markets power on the open market, BayCorp Ventures, LLC, which serves as a vehicle for the Company’s investments, Great Bay Hydro Corporation which was formed for the purpose of holding the generating facilities in Vermont acquired from the Vermont Electric Division of Citizens Communications Company, Nacogdoches Power, LLC, which was formed for the purpose of holding the Sterne Power Project and Nacogdoches Gas, LLC, which was formed for the purpose of holding natural gas and oil assets.
As of May 1, 2004, BayCorp had a majority interest in HoustonStreet Exchange, Inc., which operates HoustonStreet.com, an independent internet-based crude oil and refined products trading exchange. Prior to May 1, 2004, BayCorp held a minority interest in HoustonStreet.