Copano Energy extends solicitation for 7 1/8% notes, lifts consent fee

By Susanna Moon

Chicago, April 9 - Copano Energy, LLC extended the consent solicitation for its $510 million of outstanding 7 1/8% senior notes due 2021 and increased the consent fee in the offer.

If the company obtains the needed consents from holders of a majority of the notes, it will pay a cash consent fee of $2.00 per $1,000 principal amount of notes, up from $0.30 per $1,000 of notes, according to a company news release.

The consent solicitation will now end at 5 p.m. ET on April 11, pushed back from April 8. The solicitation began March 28.

As noted before, the solicitation is related to the company's planned merger with a subsidiary of Kinder Morgan Energy Partners, LP.

If the merger with Kinder Morgan goes through, it is expected that Kinder Morgan will unconditionally guarantee the notes, according to a previous press release. The completion of the merger requires approval by Copano's unitholders.

If Kinder Morgan guarantees the notes, the proposed amendments would allow the consolidated annual audited financial statements of Kinder Morgan and its subsidiaries, and the periodic and other reports filed by Kinder Morgan with the Securities and Exchange Commission, to satisfy the requirement of Copano to file with the SEC and to deliver to the trustee under the indenture periodic and other reports and consolidated annual audited financial statements.

Holders must be of record as of March 27.

The solicitation agent is BofA Merrill Lynch (888 292-0070 or 980 387-3907). The information agent and tabulation agent is D.F. King & Co., Inc. (888 887-0082 or, for banks and brokers, 212 269-5550).

Copano Energy is a midstream natural gas company based in Houston.

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