MxEnergy prolongs tender, ups payout for floaters due 2011

By Jennifer Chiou

New York, July 30 - MxEnergy Holdings Inc. announced the extension of its cash tender offer for any and all of its floating-rate senior notes due 2011.

The Stamford, Conn., natural gas and electricity marketer is also soliciting consents to amend the note indenture to provide holders with additional registration rights substantially similar to those rights set forth in the registration rights agreement if MXenergy terminates the tender offer after the completion of its offer to exchange notes registered under the Securities Act of 1933 for outstanding notes not registered pursuant under the act; to eliminate substantially all of the restrictive covenants in the indenture; to eliminate certain events of default in the indenture; and to amend certain other provisions.

The consent deadline is now 5 p.m. ET on Aug. 1, pushed back from July 6. The offer now ends at midnight ET on Sept. 14, prolonged from July 31.

MxEnergy said it will now pay $1,110, up from $1,050, for each $1,000 principal amount of notes, plus accrued interest to the settlement date.

The payout includes a $30.00 for those who tender by the early deadline.

The company already said it had initiated an auction process with the goal of identifying a prospective purchaser of all or substantially all of its stock.

MXenergy previously added that it does not expect to complete the auction process or identify a prospective purchaser until after the consent deadline.

The offer is conditioned upon, among other things, the consummation of the merger; a minimum tender condition; MXenergy's receipt, on or prior to the consent deadline, of the appropriate waivers from the lenders and hedge provider; the receipt of requisite consents and execution of a supplemental indenture; and MXenergy's receipt of proceeds from the merger of one or more financing transactions that are sufficient for the offer.

Morgan Stanley & Co. Inc. is the dealer manager and solicitation agent (800 624-1808 or call collect 212 761-1864). Global Bondholder Services Corp. is the information agent (866 470-3800 or call collect 212 430-3774).

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