Baseline gets consents for all 12½% notes, extends change-of-control offer

By Jennifer Chiou

New York, Aug. 22 - Baseline Oil & Gas Corp. announced that it received consents from holders of all $115 million of its 12½% senior secured notes due 2012 while prolonging its change-of-control offer to 5 p.m. ET on Oct. 2.

The offer was previously set to expire at 5 p.m. ET on Sept. 5.

Baseline said it would pay 101% plus accrued interest for the notes on Oct. 6.

The company also is soliciting consents to amend the indenture dated Oct. 1, 2007 to eliminate or modify substantially all of the restrictive covenants.

Holders who delivered consents by 5 p.m. ET on Aug. 21 will receive a fee of 2% of par.

The consent solicitation is conditioned upon receiving consents from at least the required majority of outstanding principal amount of notes to adopt the proposed amendments.

If consents are obtained from more than 75% of the outstanding principal amount of the notes, the company also will modify the indenture and the collateral agreements to release the security interest granted thereby in all property securing the notes and terminate the collateral agreements and the intercreditor agreement.

The issuer is a San Antonio-based independent oil and gas exploration and development company.

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