Encana gets consents to amend 5.8% notes, extends early deadline

By Marisa Wong

Madison, Wis., March 13 - Encana Corp. announced that its wholly owned subsidiary, Encana Acquisition ULC, received the required consents to approve proposed amendments to the indenture governing the 5.8% notes due May 1, 2014 issued by Encana Holdings Finance Corp.

Encana Acquisition has also extended the consent payment deadline to 10 a.m. ET on March 28 from 5 p.m. ET on March 13, according to a press release.

As of Thursday, holders of about $764 million, or 76%, of the outstanding principal amount of the 5.8% notes delivered their consents.

The issuer intends to execute a supplemental indenture containing the proposed amendments promptly after a majority in aggregate principal amount of the outstanding notes is accepted for purchase, which is expected to be March 31.

Holders who tender their notes by the extended consent payment deadline will receive a consent payment of $2.50 per $1,000 principal amount of notes in addition to the tender offer consideration of $1,004.59 per $1,000 of notes plus accrued interest to the settlement date.

The tender offer will expire at 10 a.m. ET on March 28.

Tenders may no longer be withdrawn.

The issuer expects to redeem any and all of the notes not tendered by the end of the offer.

Barclays (800 438-3242 or 212 528-7581 collect) is the dealer manager, and D.F. King & Co. (888 644-6071 or 212 269-5550 banks and brokers) is the tender agent and information agent.

Encana is a Calgary, Alta., oil and natural gas company.

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