MXenergy further extends consent deadline for floaters due 2011

By Angela McDaniels

Tacoma, Wash., Jan. 8 - MXenergy Holdings Inc. said it extended the consent payment deadline under the tender offer for its floating-rate senior notes due 2011 to 5 p.m. ET on Jan. 12 from Jan. 7.

The deadline was previously extended from Dec. 29. The tender offer will expire at midnight ET on Jan. 13.

The company is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants, eliminate some events of default and amend some additional provisions.

MXenergy needs consents from holders of at least a majority of the notes. Holders may not tender their notes without delivering consents.

The payment will be $500 for each $1,000 principal amount of notes, which includes a consent fee of $50 for each note tendered by the consent deadline. Holders will also receive accrued interest to the settlement date.

The tender offer is conditioned on at least a majority of the company's stock being acquired. The proceeds of the acquisition or a financing transaction will be used to fund the offer.

The offer is also subject to a minimum tender condition; the receipt of waivers from the lenders under the company's revolving credit agreement and the hedge provider under its master transaction agreement, the receipt of required consents and execution of a supplemental indenture.

The tender offer may not be extended beyond May 31.

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

MXenergy is a Stamford, Conn.-based natural gas and electricity supplier.

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