InterOil Corporation has reported its intention to offer, subject to market and other conditions, a concurrent public offering of convertible senior notes due 2015 and common shares. IOC is authorized to raise gross proceeds of up to US$280 million from the combined offerings, including over-allotments. IOC has granted the underwriters of the offerings a 30-day option to purchase 15% of each security to cover over-allotments, if any, which amount is included in the above number.

Each offering will be made pursuant to an individual prospectus supplement to InterOil's base shelf prospectus dated November 2, 2010.

Morgan Stanley & Co. Incorporated and Macquarie Capital (USA) Inc. will act as joint book-running managers on behalf of the underwriters for the common shares offering. Morgan Stanley & Co. Incorporated will act as the sole book-running manager and Macquarie Capital (USA) Inc. will act as the joint lead manager on behalf of the underwriters for the convertible note offering.

InterOil intends to use the net proceeds from this offering, including the proceeds from any exercise of the over-allotment option, for the development and construction in Papua New Guinea of a proposed condensate stripping plant and related facilities, a liquefied natural gas plant and related facilities, other exploration and development activities in Papua New Guinea, the repayment of the $25 million loan with Clarion Finanz AG, which matures in January 2011, and general corporate purposes.

Tags: InterOil Corporation