North American Energy tenders for 9% notes

By Laura Lutz

Des Moines, Sept. 8 - North American Energy Partners Inc. began a tender offer and consent solicitation for its entire $60,481,000 outstanding principal amount of 9% senior secured notes due 2010.

The tender offer will expire at 5 p.m. ET on Oct. 6. The consent deadline is 5 p.m. ET on Sept. 21.

For each $1,000 principal amount of notes tendered, the company will pay the minimum of the fixed spread price and the sum of 35% of the equity clawback price, which is $1,090, and 65% of the fixed spread price.

The fixed spread price is equal to the present value on the date of payment of all future cash flows on the notes, minus accrued interest to June 1, 2008, discounted using the 4% U.S. Treasury Note due May 31, 2008 plus 50 basis points.

The pricing will be determined on Sept. 22.

The total consideration includes a $30 consent payment for each $1,000 of notes. Holders who tender notes after the consent deadline will not receive the consent payment.

North American will also pay accrued interest up to but excluding the date of payment.

The company is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and some events of default.

Credit Suisse Securities (USA) LLC (800 820-1853 or collect 212 538-0652) is the dealer manager and solicitation agent for the offer. D. F. King & Co. (800 431-9633) is the information agent.

Based in Acheson, Alta., North American Energy Partners provides mining and site preparation, piling and pipeline installation services.

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