| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers P > Headlines for Plains Exploration & Production Co. LP > News item |
Plains Exploration calls 7 1/8% notes; tenders for 8¾% notes
By Laura Lutz
Des Moines, Oct. 4 - Plains Exploration & Production Co. announced that it plans to redeem all $250 million outstanding principal amount of its 7 1/8% senior notes due 2014 and started a tender offer and consent solicitation for all $275 million outstanding principal amount of its 8¾% senior subordinated notes due 2012.
The company will redeem the 7 1/8% notes on Nov. 3 for a price based on a make-whole calculation tied to a comparable U.S. Treasury.
In the tender offer, the company said it will pay a price based on a 50 basis point spread over a reference U.S. Treasury, plus accrued interest.
The company did not specify the reference securities.
Pricing will be the tenth business day before the expiration of the tender offer, which is set for 11:59 p.m. ET on Nov. 1.
Holders who submit consents before 5 p.m. ET on Oct. 19 will receive a consent payment of $20.
Notes tendered after the consent deadline will not receive the consent payment.
Plains will also pay accrued interest up to but excluding the purchase date.
The company is seeking consents to eliminate substantially all the restrictive covenants and certain events of default from the indenture governing the notes.
Settlement of the tender offer depends on the receipt of tenders for a majority of the 8¾% notes and the successful redemption of the 7 1/8% notes.
J.P. Morgan Securities Inc. (collect 212 270-3994) is the dealer manager and solicitation agent for the tender offer and consent solicitation. MacKenzie Partners, Inc. (800 322-2885) is the information agent.
Plains Exploration is a Houston-based oil and gas company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.