MXenergy again delays tender deadline for floaters due 2011

By Susanna Moon

Chicago, Jan. 26 - MXenergy Holdings Inc. said it once more extended the tender offer for its $190 million of floating-rate senior notes due 2011, this time to midnight ET on Jan. 28.

The previous deadlines were Jan. 23, Jan. 20, Jan. 15 and, before that, Jan. 13.

The consent deadline was pushed back to 5 p.m. ET on Jan. 28 from Jan. 23. The consent expirations were previously Jan. 20, Jan. 15 and Jan. 12.

As of the close of business on Jan. 23, holders had tendered about $28.5 million of the notes, unchanged from Jan. 20 and Jan. 15 but up from the about $27 million of tendered notes on Jan. 12.

The tender offer and consent solicitation began on Dec. 15. The consent payment deadline was originally expected to be Dec. 29.

The company is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants, eliminate some events of default and amend some additional provisions.

MXenergy needs consents from holders of at least a majority of the notes. Holders may not tender their notes without delivering consents.

The payment will be $500 for each $1,000 principal amount of notes, which includes a consent fee of $50 for each note tendered by the consent deadline. Holders will also receive accrued interest to the settlement date.

The tender offer is conditioned on at least a majority of the company's stock being acquired by a third party. The proceeds of the acquisition or a financing transaction will be used to fund the offer.

The offer is also subject to a minimum tender condition, the receipt of waivers from the lenders under the company's revolving credit agreement and the hedge provider under its master transaction agreement, the receipt of required consents and execution of a supplemental indenture.

The tender offer may not be extended beyond May 31.

Morgan Stanley & Co. Inc. (800 624-1808 or 212 761-1864) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 470-3800 or 212 430-3774) is the information agent.

MXenergy is a Stamford, Conn.-based natural gas and electricity supplier.

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