Regency Energy offers to repurchase PVR's 8 3/8% notes due 2020 at 101

By Toni Weeks

San Luis Obispo, Calif., March 27 - Regency Energy Partners LP and Regency Energy Finance Corp. gave details about its mandatory change-of-control repurchase offer that was triggered with the completion of the merger with PVR Partners, LP last Friday.

The companies are offering to purchase for cash all of PVR's outstanding 8 3/8% senior notes due 2020 at a price of 101% of the principal amount plus accrued interest.

The offer expires at 5 p.m. ET on April 22, and settlement is expected on April 23. Notes may be withdrawn at any time prior to the expiration date.

Wells Fargo Bank, NA is the depositary and trustee.

The change of control triggered a mandatory repurchase offer with respect to PVR's $300 million of 8¼% senior notes due 2018, $600 million of 8 3/8% senior notes due 2020 and $400 million of 6½% senior notes due 2021 guaranteed by PVR and subsidiary Penn Virginia Resource Finance Corp.

According to a prior 8-K filing with the Securities and Exchange Commission, within 30 days following a change of control, unless PVR has exercised its right to redeem the three series of notes, it is required to make an offer to repurchase the notes at 101 plus accrued interest.

According to a former press release, unless Regency exercises its right to redeem the notes, Regency and subsidiary Regency Energy Finance Corp. intend to fulfill their obligations with respect to the repurchase offer.

Regency is a Dallas-based midstream energy partnership focused on natural gas and natural gas liquids.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.