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Chaparral Energy begins tender offer, solicits consents for 8½% notes
By Marisa Wong
Madison, Wis., Feb. 7 - Chaparral Energy, Inc. announced that it has started a cash tender offer for any and all of its $325 million of outstanding 8½% senior notes due 2015.
The company is also soliciting consents from holders of a majority in principal amount of the notes to certain proposed amendments that will eliminate substantially all of the restrictive covenants and certain events of default in the indenture governing the notes.
The offer is scheduled to expire at 11:59 p.m. ET on March 7.
Holders who tender their notes and deliver their consents before 5 p.m. ET on Feb. 18, the consent expiration, will be eligible to receive the total consideration of $1,046.25 for each $1,000 principal amount of notes, which includes a $30.00 consent payment.
Holders tendering after the consent expiration will receive the tender offer consideration of $1,016.25 per $1,000 of notes, which is equal to the total consideration less the consent payment.
Chaparral will also pay accrued interest to but excluding the applicable payment date. The initial payment date for notes tendered before the consent expiration is expected to be Feb. 22. The final payment date is expected to be March 8.
The offer is conditioned upon the receipt of consents from holders of a majority in principal amount of the outstanding notes, execution of a supplemental indenture effecting the amendments, completion of a debt financing to raise sufficient proceeds to fund the offer and other conditions.
Wells Fargo Securities, LLC (866 309-6316 or 704 715-8341) is the dealer manager and solicitation agent for the offer. D.F. King & Co., Inc. (800 431-9643 or, for banks and brokers, 212 269-5550) is the depositary and information agent.
Chaparral is an Oklahoma City-based independent oil and natural gas production and exploitation company.
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