Stone Energy gets tenders for 63% of 8 5/8% notes by consent deadline

By Toni Weeks

San Luis Obispo, Calif., Nov. 26 - Stone Energy Corp. said in a press release that it took in tenders and consents for about $236.4 million, or roughly 63%, of its outstanding $375 million principal amount of 8 5/8% senior notes due 2017 by 5 p.m. ET on Nov. 26, the consent date for the company's tender offer and consent solicitation.

The company began the tender offer and consent solicitation on Nov. 13, seeking consents from holders representing a majority of the outstanding notes to amend the notes to shorten the minimum notice period for optional redemptions to three business days and eliminate substantially all of the restrictive covenants and events of default provisions.

As the amount tendered satisfies the majority condition, Stone Energy has entered into a supplemental indenture to effect the amendments, which will become operative when the company pays for the tendered notes.

The total purchase price will be $1,057.38 for each $1,000 principal amount of notes tendered by the consent date. The total payment includes a consent amount of $30.00 per $1,000 of notes.

Those who tender after the consent date will receive $1,027.38 for each $1,000 principal amount, or the total payment less the consent premium.

The company also will pay accrued interest up to but excluding the payment date of Nov. 27 for early tendered notes and Dec. 12 for remaining tenders.

The offer will end at 11:59 p.m. ET on Dec. 11.

As the early tender date has passed, tendered notes may no longer be withdrawn, and consents may not be revoked.

The offer is also conditioned on the completion of a capital markets debt financing. The company priced a $475 million registered offering of 7½% senior notes due 2022, with settlement expected Nov. 27.

D.F. King & Co., Inc. (800 967-4612 or 212 269-5550 collect or by e-mail stoneenergy@dfking.com) is the tender agent and information agent. BofA Merrill Lynch (980 387-3907 collect and 888 292-0070) is the dealer manager.

Stone is an independent oil and natural gas exploration and production company based in Lafayette, La.

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