Stone Energy Corp. (NYSE: SGY) has received tenders and consents from the holders of approximately $236.4 million in aggregate principal amount, or approximately 63%, of its outstanding 8.625% senior notes due 2017.
This offering is in connection with the company’s previously announced cash tender offer to purchase any and all of the notes and the related solicitation of consents to proposed amendments that would shorten to three business days the minimum notice period for optional redemptions and would eliminate substantially all of the restrictive covenants and certain events of default provisions contained in the indenture governing the notes.
Stone has entered into a supplemental indenture to the indenture that makes the proposed amendments effective, and the amendments will become operative when Stone has purchased the notes tendered in the offer. Stone's registered offering of $475 million of 7.500% senior notes due 2022 was scheduled to close on Nov. 27.
Subject to the Nov. 27 closing of Stone's pending registered offering of $475 million of 7.500% senior notes due 2022, and the satisfaction or waiver of the other conditions to the offer, holders who tendered their notes and provided their consents to the amendments to the indenture before the consent expiration will be eligible to receive, on the initial settlement date, which was also expected to be Nov. 27, the total consideration of $1,057.38 for each $1,000 principal amount of notes, which includes a consent payment of $30.00, plus accrued and unpaid interest to the initial settlement date.
Notes tendered prior to the consent expiration may no longer be withdrawn. The offer is scheduled to expire at 11:59 p.m., New York City time, on Dec. 11. Holders who tender their notes after the consent expiration and prior to the expiration time will be eligible to receive on the final settlement date, which is expected to be Dec. 12, the tender offer consideration of $1,027.38 for each $1,000 principal amount of notes, plus accrued and unpaid interest to the final settlement date.