Inergy tenders for 6 7/8%, 7%, 8¾% notes

New York, Dec. 7 - Inergy LP said it has begun two cash tender offers for three series of its notes.

The company will buy all of its $95,041,000 of 8¾% senior notes due 2015 and is also soliciting consents to amend the note indenture to eliminate most of the covenants and certain default provisions.

In the second tender, Inergy is offering to buy up to $300 million of its $750 million of 6 7/8% senior notes due 2021 and $600 million of 7% senior notes due 2018.

Holders who tender must deliver consents and consent cannot be given without tendering.

For the 8¾% notes, Inergy is offering $1,140 per $1,000 principal amount, which includes a consent payment of $30 for holders who tender with consents by the consent deadline of 5 p.m. ET on Dec. 20.

The 6 7/8% notes have first priority in the second offer. Inergy will pay $1,025 per $1,000 principal amount, including an early tender premium of $30. The 7% notes have second premium and Inergy is offering $1,040 per $1,000 principal amount, also including an early tender premium of $30 for those who tender by the early tender deadline of 5 p.m. ET on Dec. 20.

Both tenders expire at 11:59 p.m. ET on Jan. 5.

Inergy will also pay accrued interest up to the settlement date.

The offer for the 8¾% notes is subject to consents being received for a majority of the notes. Both tenders are subject to the closing of the initial public offering of the common units of Inergy's subsidiary Inergy Midstream, LP.

Barclays Capital Inc. (800 438-3242 or call collect 212 528-7581), Morgan Stanley & Co. LLC (800 624-1808) and SunTrust Robinson Humphrey, Inc. (404 926-5051) are joint dealer managers and D.F. King & Co., Inc. is the depositary and the information agent (800 290-6426, banks and brokers call 212 269-5550).

Inergy is a Kansas City, Mo., master limited partnership with operations that include the retail marketing, sale, and distribution of propane to residential, commercial, industrial, and agricultural customers. It also operates a natural gas storage business; a liquid petroleum gas storage business; a solution-mining and salt production company; and a propane supply logistics, transportation, and wholesale marketing business.

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