Sierra Pacific says all 7¼% convertibles tendered in early conversion offer

New York, Sept. 6 - Sierra Pacific Resources said it has completed its offer to encourage early conversion of its $300 million of 7¼% convertible notes due 2010 with all the securities tendered.

The exchange ended at 5 p.m. ET on Sept. 2 after being extended from 5 p.m. ET on Aug. 31.

By the old deadline, all the convertibles had been tendered but the company said it was waiting for the offer's registration statement to be declared effective by the Securities and Exchange Commission.

As announced on Aug. 3, holders 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 $14.95 on Friday.

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).

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