Callon gets needed consents for 9¾% notes

By Jennifer Chiou

New York, April 4 - Callon Petroleum Co. announced the successful end to its consent solicitation for its 9¾% senior notes due 2010 after receiving consents from holders of 94.9% of notes.

The consent solicitation ended at 11 a.m. ET on April 4. It began on March 31.

The company obtained the needed consents to amend the indenture to allow it to contribute its Entrada prospect to an unrestricted subsidiary for the purpose of entering into a credit facility to develop the prospect. It has executed a supplemental indenture.

Callon previously said that it had entered into an agreement with the holders of $148.16 million of the notes to give their consent. Approval of the amendment required the approval of holders of $150 million of the notes.

Callon said that it paid a consent fee of $5.00 for each $1,000 principal amount of notes.

Global Bondholder Services Corp. was the tabulation agent (866 470-3800 or call collect 212 430-3774).

Callon is Natchez, Miss.-based company engaged in the exploration, development, acquisition and operation of oil and gas properties.

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