Petro Stopping again extends tender for discount notes

New York, Oct. 14 - Petro Stopping Centers Holdings LP (Caa3) and Petro Holdings Financial Corp. said they are extending their previously announced exchange offer and consent solicitation for all their outstanding $113.37 million principal amount at maturity of senior discount notes due 2008, and Petro Warrant Holdings Corp. extended the concurrent consent solicitation for its outstanding warrants.

The exchange offer and the consent solicitations were extended to 5 p.m. ET on Oct. 21, subject to possible further extension, from the previous deadline of 5 p.m. ET on Oct. 14. They were originally due to expire on Sept. 30.

As of 5 p.m. ET on Oct. 14, $26.7 million principal amount at maturity of the existing notes had been tendered, unchanged from the amount which had been tendered as of Oct. 7, when the deadline was last extended.

Consents had meanwhile been received for 53.1% of the warrants, the same as when the solicitation was last extended.

As previously announced, the transaction is part of the El Paso, Texas-based travel plaza operator's refinancing of its debt.

The company is offering $242.57 in cash and $1030.30 in principal amount at maturity of new senior second secured discount notes due 2014 for each $1,000 principal amount at maturity of the existing notes.

The new notes will accrue cash interest at 14% beginning Oct. 1, 2009.

In the consent solicitation, Petro Stopping is looking to eliminate substantially all the restrictive covenants and events of default in the indenture of the existing notes.

Petro Warrant Holdings is soliciting consents to extend the mandatory purchase date of the outstanding warrants.

A valid tender in the exchange offer will also be deemed to be a consent to the proposed amendments to the indenture and, to the extent that holders of the existing notes are also holders of the outstanding warrants, to the proposed amendments to the warrant agreement.

The offer is conditional on, among other things, the receipt of tenders of at least a majority of the outstanding principal amount at maturity of the existing notes, the receipt of consents from holders of at least a majority of the outstanding warrants and the consummation of financing transactions.

In connection with the offer, Petro Stopping Centers Holdings said it intends to refinance substantially all its existing debt in order to extend its debt maturities, to increase its financial flexibility and to take advantage of current conditions in the debt markets.

The information agent is Global Bondholders Services (212 430-3774 or 866 470-4200).

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