Stone Energy starts tender offer, consent solicitation for 8¼% notes

By Angela McDaniels

Tacoma, Wash., Jan. 11 - Stone Energy Corp. has begun a tender offer and consent solicitation for its $200 million principal amount of 8¼% senior subordinated notes due 2011, according to a company news release.

The company is soliciting consents to amend the indenture governing the notes to allow it to redeem the notes on as little as three days' prior written notice. Consents are needed from the holders of at least a majority of the notes.

The company will pay $1,002.50 per $1,000 principal amount of notes. This amount includes a consent payment of $30.00 for each note tendered by 5 p.m. ET on Jan. 25, the consent expiration.

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

The offer will expire at 9 a.m. ET on Feb. 9.

The company said it may choose to settle notes tendered by the consent expiration on Jan. 26.

The offer is subject to the receipt of the required consents to amend the indenture, the execution of a supplemental indenture effecting the amendments and the completion of one or more capital markets transactions with combined net proceeds to Stone of at least $203 million. These proceeds and cash on hand will be used to fund the tender offer.

Bank of America Merrill Lynch (888 292-0070 or 980 388-4603) is the dealer manager for the tender offer, and D.F. King & Co., Inc. (888 567-1626 or 212 269-5550) is the information agent.

Stone Energy is a Lafayette, La.-based oil and natural gas company.

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