SemGroup holders tender $290 million of 7½% senior notes due 2021

By Wendy Van Sickle

Columbus, Ohio, March 14 – SemGroup Corp. said holders tendered $290,007,000, or 96.67%, of its $300 million of 7½% senior notes due 2021 by the expiration of its tender offer at 5 p.m. ET on Tuesday.

An additional $42,000 of the notes that remain subject to guaranteed delivery procedures, according to a press release.

The company expects to accept all of the valid tenders and will pay $1,053.50 per $1,000 principal amount plus accrued interest up to but excluding the settlement date, which is expected to be Wednesday.

Any notes not tendered are expected to be called for redemption on June 15 at a price of 103.75% of par plus accrued interest.

Completion of the offer is subject to conditions including execution of debt financing that raises at least $325 million. SemGroup priced $325 million of new senior notes due 2025 on March 8. Settlement of that offering is expected to occur on Wednesday.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) is dealer manager. D.F. King & Co., Inc. (877 283-0319, 212 269-5550 or www.dfking.com/semg) is information agent.

SemGroup is a Tulsa, Okla., provider of midstream services to the energy industry.

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