Frontier Oil buys $104.5 million of 6 5/8% notes, calls remainder

By Angela McDaniels

Tacoma, Wash., Nov. 22 - Frontier Oil Corp. had received tenders and consents for $104.5 million principal amount, or 70%, of its $150 million of 6 5/8% senior notes due 2011 as of 5 p.m. ET on Nov. 19, which was the consent deadline in a tender offer that began Nov. 5.

The consents received were enough to allow Frontier to enter into a supplemental to the indenture governing the notes that, among other things, eliminates substantially all of the restrictive covenants and some event-of-default provisions.

The company accepted all of the notes tendered by the consent deadline, and they were purchased on Nov. 22.

The company paid $1,003 per $1,000 principal amount of notes, which included a consent payment of $30. Holders also received accrued interest up to but excluding the payment date.

The company also announced that it will redeem all of the outstanding notes at par plus accrued interest on Dec. 23.

The tender offer is scheduled to expire at midnight ET on Dec. 6.

The tender offer is conditioned on, among other things, the company receiving replacement financing.

UBS Securities LLC (888 719-4210 or 203 719-4210) and Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) are the dealer managers and solicitation agents for the tender offer and consent solicitation. Morrow & Co., Inc. (877 807-8895 or, for banks and brokerages, 800 662-5200) is the information agent.

The note trustee is Wells Fargo Bank, NA (800 344-5128).

Frontier is a Houston-based independent oil refiner and wholesaler of refined petroleum products.

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