Elwood Energy ups consent fee for 8.159% bonds; solicitation extended

By Susanna Moon

Chicago, Feb. 1 - Elwood Energy LLC, a jointly and equally owned partnership of Dominion Resources, Inc. and J-Power USA Generation, LP, said it amended and extended the consent solicitation for its 8.159% senior secured bonds due 2026.

Elwood is seeking to amend the definition of change of control to reflect the current ownership structure of the company as well as to provide limited additional flexibility for the company's owners under the provision, according to a company press release.

The company said it is no longer seeking to replace the general provision involving the exercise of the put right associated with a change of control with more specific terms. Those terms include imposing upon the company a requirement to provide notice to holders upon a change-of-control event, removing any ambiguity concerning the period in which the put right can be exercised and providing procedures related to the actual notice of exercise and payment of the amounts due upon exercise of the put right.

As noted before, due to amortization, the principal amount outstanding of the bonds is $175,686,060, or $437.03 per bond, reduced from the original issuance of $402 million, or $1,000 per bond.

The consent solicitation will now end at 5 p.m. ET on Feb. 7, extended from Jan. 31. Holders must be of record as of Jan. 17. The offer began on Jan. 18.

Holders will now receive $10.00 for each $1,000 of unpaid principal amount, or $4.3703 per bond. The consent payment was originally set at $2.50 in cash for each $1,000 of unpaid principal amount of the respective bonds, or $1.092575 per bond.

Citigroup Global Markets Inc. (212 723-6106 collect) and Morgan Stanley & Co. LLC (212 761-1057 collect) are the solicitation agents. D. F. King & Co., Inc. (800 829-6551 or banks and brokers 212 269-5550) is the information and tabulation agent.

The energy company is based in Richmond, Va.

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