Black Elk Energy announces tender offer for 13¾% senior notes due 2015

By Tali Rackner

Norfolk, Va., July 16 – Black Elk Energy Offshore Operations, LLC began a tender offer for its $150 million 13¾% senior notes due 2015, according to an 8-K filing with the Securities and Exchange Commission.

Black Elk is also soliciting consents of noteholders to modify certain of the restrictive covenants contained in the indenture governing the notes.

The company said it will purchase any notes that are validly tendered for purchase by 5 p.m. ET on Aug. 13 at par plus accrued interest up to, but not including, the purchase date. Tenders will be accepted only in principal amounts of $2,000 or integral multiples of $1,000 in excess thereof.

Holders that tender their notes in the offer will be considered to have validly delivered their consents to the proposed amendments to the indenture governing the notes. Holders may also consent to the proposed amendments to the indenture without tendering their notes.

Black Elk said the offer and the consent solicitation are being made in connection with its proposed disposition of assets pursuant to a purchase and sale agreement between the company and Renaissance Offshore, LLC. Proceeds from the Renaissance sale will be used to fund the company’s purchase of the notes.

Black Elk Energy is a Houston-based oil and gas company.

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