DEBT

Weatherford International Inc. (NYSE: WFT), Houston, privately placed $910 million of 20-year zero-coupon senior convertible debt. The oilfield service and supply company will use the approximately $501 million of net proceeds to pay existing short-term debt and for general corporate purposes. The company said the private placement will reduce its average cost of capital significantly. The debt, which was issued at an original issue discount of $551.26 per debenture, has a yield to maturity of 3% per annum. It is convertible into common shares of the Houston oilfield supply company at a rate of 9.9970 shares per $1,000 face amount of debt. That effectively represents a price of $55.1425 per share, or a 37% premium on the stock's June 26 closing price. Under the debt's terms, the conversion rate will not be adjusted for the accrued original issued discount. But the debt's conversion price will, in effect, increase with the accretion of the debt's discount. Weatherford said that this accretion will result in an effective conversion price of $64.25 on the issue's fifth anniversary, or approximately a 60% premium to the stock's June 26 closing price. Conoco Inc. (NYSE: COCb), Houston, launched an EU500-million commercial paper program. Deutsche Bank will arrange the program, which also will feature the issuance of Belgian treasury notes. The program is designed to complement Conoco's current $2-billion U.S. commercial paper program and will be used to provide an additional funding source for the company, which will be the sole issuing vehicle. The program allows Conoco to have a global commercial paper program and to expand its presence in the global capital markets, said Miguel W. Espinosa, the company's treasurer. The program will be used to reduce any U.S. commercial paper and is not expected to increase Conoco's current debt. In addition to Deutsche Bank, Goldman Sachs International and NatWest Global Financial Markets will be dealers of the Euro commercial paper. ING Barings / BBL will act as dealer for the Belgian treasury notes. Belco Oil & Gas Corp. (NYSE: BOG), New York, entered into a $250-million amended and restated credit agreement with a group of nine major U.S. and international banks. The amended credit line carries a $200-million current borrowing base. Chase Manhattan Bank arranged and agented the new credit line, with Bank of America, Deutsche Bank and Fleet Boston Corp. as co-agents. The unsecured facility is guaranteed by the New York independent's subsidiaries and supported with the pledge of the stock of the guarantor subsidiaries. The facility's borrowing base is subject to semiannual redeterminations. American International Petroleum Corp. (Nasdaq: AIPN), New York, closed $15 million of financings that include a new $10-million equity credit line, $3 million of conventional bridge financing and a renewal of its $2-million revolving line of credit. The new credit line with GCA Strategic Investment Fund Ltd. is for $10 million of convertible preferred stock, with an option for an additional $8 million. It has no coupon. Once its registration with the Securities and Exchange Commission becomes effective, the overseas producer and domestic refiner may draw down on the line on a monthly basis in exchange for shares of its preferred stock, which is convertible at an 8% discount to the market. The credit line has a 12-month term that AIPN can renew for another year for an additional $8 million. The new bridge financing is with GCA and represents the fifth such transaction, totaling an aggregate of approximately $11 million in conventional nonconvertible financings, that AIPN has completed with the capital provider. GCA also agreed to extend $4.35 million of previously completed bridge financings until Nov. 28. LKP Financial LLP of Cummings, Ga., acted as agent for the GCA transactions. AIPN also renewed a $2-million credit revolver with Actrade Capital Inc. for another year. The company uses the credit line primarily to purchase refining feedstocks.