Seven Generations seeks approval to issue $300 million more 8¼% notes

By Angela McDaniels

Tacoma, Wash., Jan. 24 - Seven Generations Energy Ltd. is seeking bondholder approval to issue up to $300 million of additional 8¼% senior notes due 2020, according to a company news release.

The company issued $400 million of the notes at par in May 2013.

Seven Generations is asking the holders of the 8¼% notes to consent to a proposed waiver of a covenant in the indenture governing the notes that would otherwise prevent it from issuing the additional notes.

Holders of record as of 5 p.m. ET on Jan. 23 are being offered a consent fee of $5 per $1,000 principal amount of notes.

The consent solicitation will end at 5 p.m. ET on Jan. 31.

If the solicitation is successful, the company plans to issue the additional 8¼% notes by Feb. 14 and to use the proceeds to fund, in part, its 2014 capital expenditure plan.

The solicitation is subject to, among other things, the receipt of consents for a majority of the outstanding notes and the consummation of the add-on. The consent fee will only be paid once all of the conditions have been satisfied or waived.

The solicitation agent is Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147). The information and tabulation agent is D.F. King & Co., Inc. (212 269-5550 for banks and brokers, 800 848-3416 for others or seveng@dfking.com).

Seven Generations is a private oil and gas developer based in Calgary, Alta.

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