Sierra Pacific Resources tender offer oversubscribed

By Angela McDaniels

Seattle, Dec. 15 - Sierra Pacific Resources said it received tenders for $25.308 million principal amount of its 7.803% senior notes and $130.415 million principal amount of its 8 5/8% senior notes due 2014 during a tender offer that expired on Thursday.

The tender offer, which began on Nov. 15, was for up to $25 million of the 7.803% notes and up to $85 million of the 8 5/8% notes. Because the company received tenders for more than those amounts, it accepted the notes on a pro rata basis.

The pro ration factor for the 7.803% notes was about 98.8%, and the company accepted $24.972 million principal of amount of the notes for purchase.

The pro ration factor for the 8 5/8% notes was about 65.2%, and the company accepted $84.961 million principal of amount of the notes for purchase.

For each $1,000 principal amount, Sierra Pacific said it will pay $1,065 for the 7.803% notes and $1,085 for the 8 5/8% notes. All payouts include a $30.00 premium for those who tendered by the early deadline on Nov. 29.

All holders who tendered notes that were accepted for payment also received accrued and unpaid interest up to but excluding Friday, the settlement date.

The tender offers were originally for up to $30 million of Sierra Pacific's $99.142 million 7.803% notes, $50 million of its $335 million 8 5/8% notes and $30 million of its $225 million 6¾% notes.

The company said it would accept the notes on a pro rata basis and cancelled the tender offer for its 6¾% notes on Nov. 30 in order to comply with the $110 million maximum size of the offer after it received tenders for $25.308 million of the 7.803% notes and $129.565 million of the 8 5/8% notes.

Sierra Pacific said it will use cash on hand for the offer as well as a substantial portion of the proceeds from the $100 million sale by one of its subsidiaries, Tuscarora Gas Pipeline Co., of a 50% interest in the Tuscarora Gas Transmission Co.

Credit Suisse (USA) LLC was the dealer manager (800 820-1653 or call collect 212 538-0652), and Morrow & Co., Inc. was the information agent (800 607-0088 or call collect 203 658-9400).

Sierra Pacific is a Reno, Nev.-based utility holding company.

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