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Published on 3/12/2008 in the Prospect News Investment Grade Daily.

Empire District Electric gets needed consents for six series of bonds

By Jennifer Chiou

New York, March 12 - Empire District Electric Co. announced the receipt of consents from holders of 94.46% of its first mortgage bonds, including the 8 1/8% series due 2009, 6½% series due 2010, 7.2% series due 2016, 5 7/8% series due 2037, 5.2% pollution control series due 2013 and 5.3% pollution control series due 2013, enough to amend the indentures.

The solicitation expired at 5 p.m. ET on March 11. It began on Feb. 27.

The company solicited consents to provide it with additional flexibility to pay dividends to its shareholders. Empire District said it executed a supplemental indenture.

The Joplin, Mo.-based electric company sought consents from holders of at least 60% of the bonds.

The existing indenture permitted the company to pay dividends out of earned surplus accumulated since Aug. 31, 1944. The proposed amendment increased the basket available to pay dividends by $10.75 million.

Empire District previously said that it believed that about 42.5% of bondholders would deliver consents.

For each $1,000 principal amount, the company said that it paid a consent fee of $2.00 for the 8 1/8% bonds, $2.50 for the 6½% bonds, $8.50 for the 7.2% bonds, $15.00 for the 5 7/8% bonds, $1.25 for the 5.2% bonds and $1.25 for the 5.3% bonds.

MacKenzie Partners, Inc. was the information agent and tabulation agent (800 322-2885 or call collect 212 929-5500). UBS Securities LLC was the solicitation agent (contact the Liability Management Group at 888 719-4210 or call collect 203 719-4210).


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