Connacher Oil gets needed consents to amend 11¾% notes, 10¼% notes

By Melissa Kory

Cleveland, May 24 - Connacher Oil and Gas Ltd. announced that it received tenders and consents from the holders of $199.41 million, or about 99.71%, of its 11¾% first-lien senior secured notes due 2014 and $583,444,000, or about 99.34%, of its 10¼% second-lien senior secured notes due 2015 as of the consent deadline of 5 p.m. ET on May 23 in connection with its previously announced cash tender offers and consent solicitations for the notes.

The cash tender offer and consent solicitation for any and all of its $200 million of 11¾% notes and its $587.34 million of 10¼% notes started on May 10.

The Calgary, Alta.-based integrated oil company was soliciting consents to amend the note indentures.

Connacher has entered into supplemental indentures to the respective indentures governing the notes that upon Connacher's purchase of the tendered notes will eliminate substantially all of the restrictive covenants and events of default in the indentures.

The offer will end at midnight ET on June 7.

Those who tendered prior to the consent deadline will receive $1,070 per $1,000 principal amount of 11¾% notes and $1,095 for each $1,000 principal amount of 10¼% notes. The payouts include a $30 consent payment.

Notes tendered after the consent deadline but prior to the expiration date will not receive a consent payment.

Connacher will also pay accrued interest up to the settlement date, which is slated for May 31.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) and RBC Capital Markets, LLC (877 381-2099 or 212 618-7822) are the dealer managers. D.F. King & Co., Inc. is the depositary and the information agent.

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