Frontier Oil buying $65.5 million early-tendered 11¾% notes

New York, Oct. 4 - Frontier Oil Corp. (B1/B+) said that holders of its 11¾% senior notes due 2009 tendered $65.5 million of the notes to the company for early repurchase under its previously announced tender offer. Frontier said that it had accepted all notes tendered by the consent deadline, which expired as scheduled at 5 p.m. ET on Oct. 1.

The company said it has waived the minimum tender and supplemental indenture conditions to the tender offer and related consent solicitation in order to accept those notes

The company meantime will continue its underlying tender offer for the notes, which is scheduled to run through Oct. 18, subject to possible extension.

Any notes remaining outstanding after the tender offer become callable by the company on Nov. 15 at a price of $1,058.75 per $1,000 principal amount, plus accrued interest up to the redemption date.

As previously announced, Frontier Oil, a Houston-based refinery operator, said on Sept. 20 that it had begun a cash tender offer and consent solicitation for all its $170.449 million principal amount of 11¾% notes, and was also soliciting noteholder consents to amend the notes' indenture.

Frontier said it would pay total consideration of $1,065 per $1,000 principal amount of notes tendered by the consent deadline. The total includes a $30 per $1,000 principal amount consent payment.

Holders tendering after the consent deadline but before the expiration will receive $1,035 per $1,000 principal amount, but not the consent payment.

All tendering holders will also receive accrued interest up to but excluding the payment date.

The tender is subject to at least a majority of the principal amount of the notes being tendered, and Frontier obtaining financing on acceptable terms (Frontier said on Sept, 21 that it had sold $150 million of new 6 5/8% senior notes due 2011 in a private placement transaction slated to close Oct. 1. It said proceeds from the sale would be used to help fund the 11¾% tender offer).

Bear, Stearns & Co. Inc. is dealer manager and solicitation agent (877 696-BEAR or 877 696-2327). Morrow & Co. Inc. is the information agent (800 607-0088).

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