Petrohawk gets tenders for 75% of 9 7/8% notes due 2011 before early deadline

By Jennifer Chiou

New York, June 22 - Petrohawk Energy Corp. said holders of about 75% of its $124.9 million of 9 7/8% senior notes due 2011 tendered their securities as of 5 p.m. ET on June 21.

The consent deadline was extended to 5 p.m. ET on June 22.

The tender offer is scheduled to expire at 5 p.m. ET on July 10, prolonged from 5 p.m. ET on July 7.

The Houston independent oil and gas company added that the tender offer and consent solicitation are in anticipation of its previously announced merger with KCS Energy, Inc.

Petrohawk and KCS, also an independent oil and gas company, announced the expiration of the waiting period under the Hart-Scott-Rodino Act and added that they await shareholder approval at July 12 meetings.

The companies said that holders of KCS's 7 1/8% senior notes due 2012 have inquired as to whether the proposed merger constitutes a change of control, which would entitle them to put the securities at 101%. Petrohawk and KCS said that they continue to believe there will not be a change of control based on the calculation of the number of Petrohawk common shares expected to be issued to KCS stockholders in the merger and other factors.

Petrohawk is soliciting consents for proposed amendments to the note indenture, eliminating all of the restrictive covenants, certain events of default and related provisions.

The offer began on June 8.

For each $1,000 principal amount, Petrohawk said its payout will be determined on the basis of a yield to April 1, 2008 of the 4 5/8% Treasury due March 31, 2008 and 50 basis points. The payout includes a $30.00 consent payment for those who tendered by the consent date.

The company said it will also pay accrued interest up to the payment date.

Credit Suisse Securities (USA) LLC is the dealer manager and solicitation agent (800 820-1653 or call collect 212 538-0652). Computershare Trust Co., NA is the depositary and Georgeson Shareholder Communications, Inc. is the information agent (800 279-7074 or call collect 212 440-9800).

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