Energy Partners begins self-tender offer for 8.7 million outstanding shares at $23 per share

By Lisa Kerner

Charlotte, N.C., March 26 - Energy Partners, Ltd. said it began a cash tender offer Monday to purchase up to 8.7 million, or 22%, of its issued and outstanding common shares at $23.00 per share, or about $200 million.

The offer is not subject to any minimums and will expire at midnight ET on April 20.

If more than 8.7 million shares are tendered, the company will purchase the shares tendered on a pro rata basis, according to a company news release.

Banc of America Securities LLC and affiliates agreed to provide sufficient funds to finance the offer, to refinance the Energy Partners' bank credit facility and to refinance its 8¾% senior notes through a concurrent tender offer and consent solicitation, the release stated.

Banc of America Securities LLC (888 583-8900, ext. 8426) is dealer manager for the tender offer, and MacKenzie Partners (800 322-2885) is information agent

On March 12, the company announced its self-tender offer as part of an overall strategic plan that included the sale of some $125 million worth of property.

Energy Partners had solicited 63 potential bidders for the company as part of its exploration of strategic alternatives. However, no definitive offer was made to purchase the company.

Energy Partners is an independent oil and natural gas exploration and production company based in New Orleans.

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