Inergy gets consents for 99% of 8¾% notes due 2015, enough to amend

By Susanna Moon

Chicago, Dec. 21 - Inergy LP said it received tenders and consents from holders of $94,235,000 principal amount, or more than 99%, of its $95,041,000 of 8¾% senior notes due 2015 as of the consent deadline at 5 p.m. ET on Dec. 20.

As a result, Inergy executed a supplemental indenture to the notes eliminating most of the covenants and default provisions, which will become operative when the company purchases the tendered notes on Dec. 21.

Holders may continue to tender notes until 11:59 p.m. ET on Jan. 5.

As previously noted, Inergy solicited consents to amend the 8¾% notes. Holders who tender must deliver consents and vice versa. The offer for the 8¾% notes required consents from holders of a majority of the notes.

The payment on offer for the 8¾% notes is $1,140 per $1,000 principal amount, including a consent fee of $30 for noted tendered by the consent date.

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

Offer for other series

Inergy said on Dec. 19 that it lowered the maximum amount of notes it will buy in the tender offer for its $750 million of 6 7/8% senior notes due 2021 and $600 million of 7% senior notes due 2018 to $150 million from $300 million.

The company previously said it made the change due in part to the proceeds from Inergy Midstream, LP's initial public offering of common units being less than originally expected. The smaller cap will result in a smaller amount of debt outstanding under the company's revolving credit facility.

In addition, the early tender date and the withdrawal deadline were extended to 5 p.m. ET on Dec. 28 from 5 p.m. ET on Dec. 20.

The acceptance priority level is one for the 6 7/8% notes and two for the 7% notes.

For each $1,000 principal amount, Inergy will pay $1,025 for the 6 7/8% notes and $1,040 for the 7% notes. These prices include an early tender premium of $30 for those who tender by the early tender deadline.

Holders will also receive accrued interest up to the settlement date.

If the offer is oversubscribed at the early tender date, Inergy may opt not to accept any additional notes tendered after the early tender date.

The tender offers expire at 11:59 p.m. ET on Jan. 5.

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

Inergy is a Kansas City, Mo., master limited partnership with operations that include the retail marketing, sale and distribution of propane. 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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