Star Gas extends tender and exchange for 10¼% notes

New York, April 25 - Star Gas Partners, LP said it has extended the expiration of its tender and exchange offer and consent solicitation for its 10¼% senior notes due 2013.

The end date is now 12 p.m. ET on April 27 instead of midnight ET on April 25.

Holders can tender their notes for $73.132 million in cash, 13.434 million common units at a price of $2.00 per unit or new 10¼% series B senior notes due 2013. The cash on offer will be reduced by any amounts needed to make change of control payments to holders that do not tender.

Star Gas started the tender on March 28.

Kestrel Energy Partners, LLC is planning to make an equity investment in the Stamford, Conn., distributor of home heating oil, spending $16.875 million to buy 6.75 million common units at $2.50 per unit. In additional, 19.6875 million common units will be offered to existing unitholders at $2.00 per unit in a rights offering. Kestrel will backstop the rights offering at a price of $2.25 per unit.

The tender for the notes is subject to completion of the transactions with Kestrel and holders of at least 93% of the notes participating. Star Gas has a lock up agreement with some holders who have agreed to tender. Some noteholders have also agreed to backstop the common units so that all 13.434 million are exchanged.

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