Southern Star Central gets no more tenders, calls remaining 6¾% notes

By Susanna Moon

Chicago, June 30 – Southern Star Central Corp. said it received no additional tenders in the offers for its 6¾% senior notes due 2016 since the early deadline of 5 p.m. ET on June 13.

The company called the remaining notes, $53,412,000 principal amount of its 6¾% notes issued in 2006 and $10.83 million principal amount of 6¾% notes issued in 2008, according to a company press release.

Holders will receive par plus accrued interest to the redemption date of July 16.

As of the early tender deadline, the company had received tenders and consents for $146,588,000 principal amount, or 73.29%, of its 6¾% notes issued in 2006, $39.17 million principal amount, or 78.34%, of its Rule 144A 6¾% notes issued in 2008 and none of its Regulation S 6¾% notes issued in 2008, according to a company news release.

The tender offers ended at midnight ET on June 27. The offers began June 2.

As previously announced, the total purchase price was $1,003.30 for each $1,000 principal amount of notes. The total amount included an early tender payment of $30.00 per $1,000 of notes tendered by the early tender date.

The company also paid accrued interest up to but excluding the payment date, which was June 16 for the early tendered notes.

The company also solicited consents to amend the notes to eliminate substantially all of the restrictive covenants and some events of default.

The company received enough consents to amend the indentures governing the notes issued in 2006 and the Rule 144A notes issued in 2008. Supplemental indentures were executed.

The offers were conditioned on completion of an issue of debt with proceeds of at least $450 million, the company securing consents from holders of at least a majority of the notes and the execution of supplemental indentures.

The company priced a $450 million issue of eight-year senior notes (Ba1/BB+) at par to yield 5 1/8% on June 5, and the issue settled June 16.

RBC Capital Markets, LLC (877 381-2099 or 212 618-7822) was the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 578-5378 or 212 269-5550) was the information agent and tender agent.

Southern Star is an Owensboro, Ky., natural gas transmission company.

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