Providence Resources has made an offer to holders of its convertible bond to purchase the remaining principle. The bond, which is due to mature in July, was issued in 2008 for €42 million. About €30 million of that is outstanding.

Providence plans to finance the purchase with some of the net proceeds of its recent share placing, which raised $100 million, after which the purchased bonds will be cancelled.

“Extinguishing the bond has been an aim of Providence for some time,” Davy said in a note. “It was part of the rationale behind the $100 million funding, and the current early offer provides a mechanism to save a small amount of the 12 per cent interest charge carried by the bond.”