Regency Energy extends exchange offer for Eagle Rock's 8 3/8% notes

By Susanna Moon

Chicago, April 28 - Regency Energy Partners LP and Regency Energy Finance Corp. extended the private exchange offer for $550 million outstanding 8 3/8% senior notes due 2019 of Eagle Rock Energy Partners, LP and Eagle Rock Energy Finance Corp.

The offer will now end at 11:59 p.m. ET on May 28, extended from April 29, to coincide with the expected closing of the Eagle Rock acquisition, according to a company press release.

As of 11:59 p.m. ET on April 25, Regency had received tenders for about 31.29% of the Eagle Rock notes.

The company said on April 2 that it began the offer for the acquisition of Eagle Rock's midstream business. The exchange offer is contingent on completion of the acquisition.

As previously announced, Regency is offering new 8 3/8% senior notes due 2019 on a par-for-par basis plus accrued interest.

The company said the new Regency notes will have substantially the same economic terms as the Eagle Rock notes, including optional redemption terms.

At the request of Eagle Rock, Regency is soliciting consents to amend the note indenture to delete substantially all of the restrictive covenants, modify the covenants regarding mergers and consolidations and eliminate certain events of default.

The company needs consents from holders of a majority of the notes in order to make the amendments.

Regency is a Dallas-based midstream energy partnership focused on natural gas and natural gas liquids. Eagle Rock is a midstream and upstream oil and natural gas company based in Houston.

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