Copano Energy calls 7 1/8% notes due 2021 for redemption on Sept. 4

By Toni Weeks

San Luis Obispo, Calif., Aug. 5 - Copano Energy, LLC and its wholly owned subsidiary, Copano Energy Finance Corp., will redeem $178.5 million of their outstanding $510 million of outstanding 7 1/8% senior notes due 2021 on Sept. 4, according to a company press release.

The notes will be redeemed at a redemption price of $1,071.25 per $1,000 principal amount, along with any accrued interest to the redemption date.

The notes are being called for redemption due to the provisions of the indentures governing the notes, which allow the issuers to redeem up to 35% of the aggregate principal amount of notes with the net cash proceeds of one or more equity offerings.

According to the release, the company entered into a membership interest purchase agreement on Aug. 5 to sell membership units to Kinder Morgan Energy Partners, LP for a purchase price that will be equal to or greater than the total redemption payment. The equity offering will close on or before the redemption date.

U.S. Bank NA is the trustee.

Copano Energy is a midstream natural gas company based in Houston.

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