Seitel accepts tenders for 98.94% of 11¾% notes

By Jennifer Chiou

New York, Feb. 14 - Seitel Acquisition Corp. said it accepted tenders from holders of $187 million, or 98.94%, of Seitel, Inc.'s $189 million 11¾% senior notes due 2011.

The amount of tendered notes accepted was unchanged from the consent solicitation deadline of Jan. 30, when Seitel executed a supplemental indenture that eliminated substantially all of the restrictive covenants and certain events of defaults and modified the defeasance and other provisions.

The tender offer expired on Wednesday. It began on Jan. 17.

The tender consideration is $1,247.87 per $1,000 principal amount of notes, which equals the sum of the present value on the settlement date of $1,000 - the redemption amount at maturity on July 15, 2011 - plus the remaining scheduled interest payments to the maturity date, based on the yield to maturity of the 5 1/8% U.S. Treasury due June 30, 2011 plus 50 basis points, minus accrued interest.

Pricing was set on Jan. 30. The reference yield was 4.872%.

The tender consideration includes a $30.00 consent payment for each $1,000 principal amount of notes tendered before the consent deadline. The company will also pay accrued interest.

The tender offer was subject to the consummation of the merger between Seitel, Seitel Acquisition and Seitel Holdings LLC, which closed on Wednesday.

Morgan Stanley & Co., Inc. (800 624-1808 or 212 761-1941), Deutsche Bank Securities Inc. (800 553-2826 or 212 250-7772) and UBS Securities LLC (888 722-9555 or 203 719-4210) were dealer managers and solicitation agents. D.F. King & Co., Inc. (800 290-6427 or 212 269-5550) was the information agent.

Seitel is a Houston-based provider of seismic data to the oil and gas industry.

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