Cimarex gets consents for 86% of 7 1/8% notes; redemption to follow

By Jennifer Chiou

New York, April 5 - Cimarex Energy Co. had received tenders and consents from holders of $299.8 million, or 86%, of its $350 million principal amount of 7 1/8% senior notes due 2017 as of the consent expiration time, 5 p.m. ET on April 4, according to a company news release.

The consents are enough for the company to execute a supplemental indenture.

Cimarex said it will call for redemption any notes that remain outstanding after the offer.

As previously reported, the total purchase price will be $1,039.38 for each $1,000 principal amount of notes, which includes a consent payment of $3.75 per $1,000 of notes tendered by the early deadline.

The company also will pay accrued interest up to but excluding the settlement date.

Cimarex is soliciting consents to amend the notes to eliminate or modify covenants and events of default.

Holders who tender their notes are deemed to consent to the proposed amendments, and holders may not deliver consents without tendering their notes.

The tender offer will end at midnight ET on April 18.

The tender offer is conditioned on the completion of financing with enough proceeds to fund the offer.

Cimarex announced that it closed on its previously announced public offering of $750 million of 5 7/8% senior notes due 2022.

J.P. Morgan Securities LLC (800 245-8812 or collect 212 270-1200) is the dealer manager and solicitation agent. MacKenzie Partners, Inc. (800 322-2885 or collect 212 929-5500) is the information agent.

Cimarex is a Denver-based oil and gas exploration and production company. It started the offer on March 22.

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