Puma Energy ups cap for 6¾% notes to $590 million in tender via Merrill

By Marisa Wong

Morgantown, W.Va., Oct. 4 – Merrill Lynch International said it has accepted for purchase $590 million of notes issued by Puma International Financing SA and guaranteed by Puma Energy Holdings Pte. Ltd. tendered under its previously announced cash tender offer. The notes were accepted with a single proration factor of 99.3692% and are expected to settle on Wednesday.

Merrill Lynch also said the conditions for the tender offer have now been satisfied.

As announced Sept. 18, Merrill Lynch offered to purchase $300 million of Puma’s $1 billion outstanding 6¾% senior notes due 2021. The offeror said it would buy the notes and then exchange them with the company for cash and new notes.

Holders had tendered $629,043,000, or 62.9%, of the outstanding notes as of the early tender deadline at 5 p.m. ET on Sept. 29, as previously reported.

Merrill Lynch said before that, because the offer had been oversubscribed, it would accept the early tendered notes for purchase using a proration factor of 51.86666%.

Of the tendered amount, holders had tendered $500,085,000 principal amount of the notes with a request for a priority allocation of new notes.

The tender will be funded by an offering of new dollar-denominated senior notes, as previously noted.

Puma Energy priced an upsized $600 million of 5 1/8% seven-year notes on Tuesday.

The tender cap could be increased or decreased after pricing of the new notes, in which case the proration factor would be amended accordingly, the company said in an earlier notice.

The total tender price is $1,036.75 per $1,000 principal amount, which includes an early tender payment of $36.75 per $1,000 that will only be paid to those who participated by the early tender deadline.

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

The tender had been set to end at 11:59 p.m. ET on Oct. 16. Early settlement had been planned for Oct. 3 and final settlement for Oct. 18.

After the tender ends, Puma may call some or all of the notes. If it does, the price will be 103.375 plus accrued interest, a sum that falls to 101.6875 plus accrued interest on Feb. 1.

Merrill Lynch International (+44 20 7996 5420, 980 388-3646, 888 292-0070 or dg.lm_emea@baml.com) and Societe Generale (+44 20 7676 7951, 212 278-6957, 855 881-2108 or liability.management@sgcib.com) are the dealer managers.

Lucid Issuer Services Ltd. (+44 20 7704 0880 or puma@lucid-is.com) is the tender agent and information agent.

Puma Energy is a midstream and downstream oil company based in Singapore.

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