Southern Star Central tenders, seeks consents for two series due 2016

By Susanna Moon

Chicago, June 2 - Southern Star Central Corp. said it began cash tender offers for its outstanding $200 million 6.75% senior notes due 2016 and $50 million 6.75% senior notes due 2016.

The company is also soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and events of default, according to a press release.

The total purchase price will be $1,003.30 for each $1,000 principal amount of notes tendered by 5 p.m. ET on June 13, the early tender date.

The total amount includes an early tender payment of $30.00 per $1,000 principal amount.

Holders who tender their notes after the early tender deadline will receive $973.30 per $1,000 principal amount.

The company will also pay accrued interest to but excluding the payment date.

The tender offers will end at midnight ET at the end of the day on June 27, the company said.

The offers are conditioned on completion of an issue of debt with proceeds of at least $450 million, the company securing consents from holders of at least a majority of the notes and the execution of supplemental indentures.

RBC Capital Markets, LLC (877 381-2099 or 212 618-7822 collect) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 578-5378 or 212 269-5550) is the information agent and tender agent.

Southern Star is an Owensboro, Ky., natural gas transmission company.

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