ENSOURCE <EEE> SELLS CONVERTIBLE PREFERRED
Ensource Inc said it has agreed to sell
one mln shares of convertible preferred stock to closely-held
United Meridian Corp for 25 dlrs a share and to grant United
warrants to buy 550,000 common shares.
    Ensource said United chairman Ralph E. Bailey, who recenty
retired as chairman of Du Pont Co's <DD> Conoco Inc and vice
chairman of Du Pont, and United president Joseph D., Mahaffey
have been named to the board. It said United will later
designate two more members to the 10-member board.
    The company said it and United have also arranged for
modifications to Ensource's senior bank credit agreement.
    It said United will hold a 41 pct voting interest in
Ensource on receipt of the preferred, which carries an annual
dividend of 2.125 dlrs per share. Each share is convertible
into 2.315 common shares.
    The company said part of the dividends on the preferred
will be paid in more convertible preferred shares.
    It said the transaction is subject to United's approval of
the bank debt restructuring documents and Federal Trade
Commission approval.
 Reuter
