Penn Virginia starts cash tender offer for $300 million 10 3/8% notes

By Jennifer Chiou

New York, April 11 - Penn Virginia Corp. announced the launch of its cash tender offer for any and all of its $300 million of 10 3/8% senior notes due 2016.

The company is also soliciting consents to amend the note indenture to shorten to three business days the minimum notice period for optional redemptions and to eliminate substantially all restrictive covenants and certain default provisions.

The offer will expire at 11:59 p.m. ET on May 8.

For each $1,000 principal amount, the company is offering $1,060, which includes a consent payment of $30.00 for those who tender prior to 5 p.m. ET on April 24.

Penn Virginia will also pay accrued interest.

Initial settlement is earmarked for May 2, and final settlement is set for May 9.

The company is seeking tenders from holders of a majority of notes.

The offer is conditioned on the execution of a supplemental indenture effecting the amendments, the completion of financing sufficient to fund the offer and consummation of the company's previously announced Eagle Ford Shale acquisition.

D.F. King & Co., Inc. is the tender agent and information agent (800 967-4612 or call collect 212 269-5550; pva@dfking.com).

RBC Capital Markets, LLC is the dealer manager and solicitation agent (212 618-7822 or 877 381-2099).

The Radnor, Pa.-based issuer is an independent oil and gas company.

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