Star Gas starts change-of-control offer for all $7.6 million of old 10¼% notes

By Jennifer Chiou

New York, May 17 - Star Gas Partners LP announced a change-of-control offer for its $7.6 million of old 10¼% senior notes due 2013.

The Stamford, Conn., distributor of home heating oil said it will repurchase the notes at 101% plus accrued interest through the payment date.

The offer expires at 5 p.m. ET on June 15.

On April 28, the company said it repurchased $65.3 million of its 10¼% notes, converted $26.9 million of the notes into 13.4 million common units at a conversion price of $2.00 per unit and exchanged $165.3 million of the notes for a like amount of 10¼% series B senior notes due 2013.

Also on April 28, Kestrel Energy Partners LLC made a $57.7 million equity investment in Star Gas, which was funded through the purchase of 6.75 million common units at $2.50 per unit for a total of $16.875 million and a rights offering to common unitholders of 19.6875 million common units at $2.00 per unit.

The company said that the offer does not affect its $165.3 million of new 10¼% senior notes due 2013.

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