Stone Energy holders deliver consents needed to amend 8¼% notes

By Susanna Moon

Chicago, Jan. 26 - Stone Energy Corp. said it received tenders and consents from holders of more than 96.6% of its outstanding $200 million principal amount of 8¼% senior subordinated notes due 2011 as of 5 p.m. ET on Jan. 25, the consent deadline.

Stone said it intends to execute a supplemental indenture to the notes to permit the company to redeem the notes on as little as three days prior written notice. The supplemental indenture will become operative when the company purchases a majority of the outstanding notes, which was expected to occur Jan. 26.

Stone said the offer also is subject to the closing on Jan. 26 of the company's previously announced public offering of $275 million of 8 5/8% senior notes due 2017.

The offer will expire at 9 a.m. ET on Feb. 9. It began on Jan. 11.

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 the consent expiration.

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

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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