Stone Energy gets tenders for 68% of 6¾% notes by consent deadline

By Susanna Moon

Chicago, Nov. 6 - Stone Energy Corp. said it received tenders for $136.1 million, or about 68%, of the $200 million outstanding principal amount of its 6¾% senior subordinated notes due 2014 by the consent expiration of 5 p.m. ET on Nov. 5.

As a result of receiving the needed consents, Stone entered into a supplemental indenture to the notes to eliminate substantially all of the restrictive covenants and event of default provisions, according to a company press release.

Stone said it plans to redeem on Dec. 17 any outstanding notes not tendered in the offer.

The total purchase price will be $1,005 for each $1,000 principal amount of notes tendered by the consent expiration, which includes a consent payment of $30.00 per $1,000 principal amount, as noted before.

Holders also will receive accrued interest up to but excluding the payment date.

The tender offer will continue until 11:59 p.m. ET on Nov. 20. The offer began Oct. 22.

Those who tender after the consent deadline will receive $975.00 per $1,000 of notes plus accrued interest.

The offer is conditioned on receiving tenders for at least a majority of the outstanding notes, which has now been satisfied, and the completion of financing with proceeds of at least $225 million.

Stone Energy priced $300 million of 7½% 10-year senior notes at 98.277 to yield 7¾% on Oct. 23, as reported by Prospect News.

Bank of America Merrill Lynch and Barclays are the joint bookrunners.

Bank of America Merrill Lynch (888 292-0070 or collect 980 387-3907) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 269-6427) is the information agent.

The issuer is a Lafayette, La.-based independent oil and gas exploration and production company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.