Stone Energy gets no more tenders for 8 5/8% notes, redeems remainder

By Susanna Moon

Chicago, Dec. 16 - Stone Energy Corp. settled tenders for $236.4 million of its 8 5/8% senior notes due 2017, according to an 8-K filing with the Securities and Exchange Commission.

The company paid about $256.5 million for the purchase on Nov. 27 and redeemed the remaining notes at 105.375 on Dec. 13.

The tender offer and consent solicitation ended at 11:59 p.m. ET on Dec. 11. The offer began on Nov. 13.

No additional notes had been tendered since the consent deadline.

As previously noted, holders had tendered about 63% of its outstanding $375 million principal amount of the 8 5/8% notes as of 5 p.m. ET on Nov. 26, the consent date.

After having received the needed majority consents, Stone Energy entered into a supplemental indenture to the notes that became operative when the company settled the early tendered notes.

The company sought consents to amend the notes to shorten the minimum notice period for optional redemptions to three business days and eliminate substantially all of the restrictive covenants and some event of default provisions.

The total purchase price was $1,057.38 for each $1,000 principal amount of notes tendered by the consent date. The total payment included a consent amount of $30.00 per $1,000 of notes.

Those who tendered after the consent date would have received $1,027.38 for each $1,000 principal amount, or the total payment less the consent premium.

The company also paid accrued interest up to but excluding the payment date.

The offer was conditioned on the completion of a capital markets debt financing. The company priced a $475 million registered offering of 7½% senior notes due 2022, with settlement on Nov. 27.

BofA Merrill Lynch (980 387-3907 collect and 888 292-0070) was the dealer manager. D.F. King & Co., Inc. (800 967-4612 or 212 269-5550 collect or by e-mail stoneenergy@dfking.com) was the tender agent and information agent.

Stone is an independent oil and natural gas exploration and production company based in Lafayette, La.

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