Sierra Pacific Resources gets 58% in early tender for 8¾% notes

New York, March 16 - Sierra Pacific Resources (B2/B-) said that it had received tenders from the holders of $174.094 million principal amount of its 8¾% notes due 2005, or about 58% of the $300 million outstanding, by the early tender deadline under its previously announced tender offer for those notes.

Although the early tender deadline expired as scheduled at 5 p.m. ET on March 15, without extension, the company agreed to allow holders to tender their notes until 5 p.m. ET March 16 and still receive the total consideration for their tendered notes.

As previously announced, Sierra Pacific, a Reno, Nev., utility holding company, said on March 8 that it had begun a tender offer for all its $300 million principal amount of 8¾% notes due 2005.

It set a now-expired early tender deadline of 5 p.m. ET on March 15 and said the tender offer would expire at midnight ET on April 2, subject to possible extension.

Holders tendering their notes by the early tender deadline would receive total consideration of 107.225% of par (including a $30 per $1,000 principal amount early tender premium); those tendering after the early tender deadline but before the expiration date would receive 104.22% of par but would not receive the early tender payment. All tendering holders would additionally receive accrued interest up to, but not including, the date of payment.

The company said it planned to finance the tender offer with proceeds of a debt financing and that obtaining sufficient funds on satisfactory terms would be a condition of the offer. On March 9, the company said that it was seeking to raise $300 million through a Rule 144A private placement of senior notes due 2014.

Lehman Brothers Inc. (Contact Liability Management Group at 800 438-3242 or 212 528-7581) and Merrill Lynch & Co. (Contact Liability Management Group at 800 654-8637 or 212 449-4914) are dealer managers for the tender offer, and Morrow & Co. Inc. (800 654-2468 or 212 754-8000) is the information agent.

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