Sierra Pacific starts offer to encourage early conversion of 7¼% convertibles

New York, Aug. 3 - Sierra Pacific Resources said it has begun an offer to encourage early conversion of its $300 million of 7¼% convertible notes due 2010.

Holders who participate will receive an incentive of $180 in cash per $1,000 principal amount of notes plus accrued interest up to but not including the settlement date. The payment is in addition to the stock that will be received at the regular conversion rate of 219.1637 shares per note, a price of $4.5628 per share. Sierra Pacific stock closed at $13.00 on Tuesday.

The offer runs through 5 p.m. ET on Aug. 31.

The Reno, Nev., electric and gas utility said the offer is subject to conditions including the receipt of sufficient financing.

Lehman Brothers Inc. (800 443-0892 or 212 526-0111, attention Liability Management Group), Merrill Lynch, Pierce, Fenner & Smith Inc. (800 654-8637 or 212 449-4914, attention Liability Management Group) and Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) are dealer managers. Morrow & Co., Inc. is information agent (800 654-2468 or 212 754-8000).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.