Energy Partners begins tender for 8¾% notes

By Jennifer Chiou

New York, March 26 - Energy Partners Ltd. said it launched a tender offer for any and all of its 8¾% senior notes due 2010.

The New Orleans-based oil and natural gas exploration and production company is also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

The consent deadline is 5 p.m. ET on April 9. The offer ends at midnight ET on April 20.

For each $1,000 principal amount of notes, the company said it will pay the present value of $1,043.75, the redemption price for the notes on Aug. 1 - the notes' first call date - discounted using the 3 7/8% Treasury note due July 31, 2007 plus a fixed spread of 50 basis points.

The payout will include a $30.00 consent payment for those who tender by the early deadline.

The offer is conditioned on the closing of the company's equity self-tender offer, sufficient financing as well as consents from holders of a majority of notes.

Banc of America Securities LLC is the dealer manager (contact High Yield Special Products at 888 292-0070 or call collect 704 388-9217). Mackenzie Partners, Inc. is the information agent and depositary (800 322-2885 or call collect 212 929-5500).

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