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Harvest Energy Trust Announces Closing of $60 Million Bought Deal Financing

Jan 29, 2004 - 08:57 ET


This press release is not for release or distribution in the 
United States. 

Harvest Energy Trust (the "Trust" or "Harvest") has closed its 
previously announced issue of $60,000,000 principal amount of 
convertible unsecured subordinated debentures (the "Debentures") 
at a price of $1,000 per Debenture. The issue included 
$50,000,000 principal amount of Debentures as announced on 
January 13th, 2004, and an additional $10,000,000 principal 
amount of Debentures issued on the exercise of the option granted 
to the underwriters. The offering was made on a bought deal basis 
through a syndicate of underwriters led by National Bank 
Financial Inc. and including CIBC World Markets Inc., FirstEnergy 
Capital Corp., Haywood Securities Inc., TD Securities Inc. and 
Canaccord Capital Corporation. 

Purchasers of the Debentures will receive interest at an annual 
rate of 9% payable semi-annually on May 31 and November 30 in 
each year commencing on May 31, 2004. The Debentures mature on 
May 31, 2009 and are convertible into trust units of Harvest at a 
price of $14.00 per trust unit, subject to adjustment in certain 
events. The Debentures are redeemable by the Trust at a price of 
$1,050 per Debenture after May 31, 2007 and on or before May 31, 
2008 and at a price of $1,025 per Debenture after May 31, 2008 
and before maturity on May 31, 2009, in each case, plus accrued 
and unpaid interest thereon, if any. The Debentures are listed 
for trading on the TSX under the symbol HTE.DB. 

The net proceeds to the Trust from the sale of the Debentures, 
after deducting fees payable to the underwriters and estimated 
expenses of the Offering, are estimated to be $57.4 million. 
Approximately $25 million of the net proceeds will be used to 
repay the Equity Bridge Notes and the remainder will initially be 
used to repay outstanding bank indebtedness and then will be used 
for general trust purposes. 

The securities of Harvest have not been registered under the U.S. 
Securities Act of 1933, as amended, and may not be offered or 
sold in the United States absent registration or applicable 
exemption from the registration requirements. This news release 
shall not constitute an offer to sell or the solicitation of an 
offer to buy securities in any jurisdiction. 

ADVISORY: Certain information regarding Harvest Energy Trust and 
Harvest Operations Corp. including management's assessment of 
future plans and operations, may constitute forward-looking 
statements under applicable securities law and necessarily 
involve risks associated with oil and natural gas exploration, 
production, marketing and transportation such as loss of market, 
volatility of prices, currency fluctuations, imprecision of 
reserve estimates, environmental risks, competition from other 
producers and ability to access sufficient capital from internal 
and external sources. As a consequence, actual results may differ 
materially from those anticipated in the forward-looking 



 Harvest Energy Trust
Jacob Roorda
(403) 265-1178


Harvest Energy Trust
David M. Fisher
Vice President, Finance
(403) 265-1178


Harvest Energy Trust
1900, 330 - 5th Avenue S.W.
Calgary, AB T2P 0L4
(403) 265-1178
(403) 265-3490 (FAX)