Pioneer Natural Resources begins tender offer for 6½% notes

By Angela McDaniels

Seattle, April 27 - Pioneer Natural Resources Co. has begun a tender offer for the $350 million outstanding of its 6½% senior notes due 2008, according to a company news release.

The tender offer expires at midnight ET on May 24.

The tender price for the notes will equal the sum of the present value of scheduled payments up to and including the maturity date discounted using the bid-side yield on the 4.375% U.S. Treasury note due Dec. 31, 2007 and 35 basis points, minus interest accrued up to but excluding the settlement date.

The tender price will be calculated at 10 a.m. ET on May 10.

Noteholders who tender by 5 p.m. ET on May 10, the early tender date, will receive an additional early tender payment of $20 per $1,000 principal amount of notes.

In all cases, noteholders who tender will also receive interest accrued up to but excluding the settlement date, which will be May 11 for noteholders who tender by May 10 and May 25 for those who tender by May 24.

The company said that completion of the tender offer is conditioned on, among other things, the successful closing of its public offering of $450 million of 6 7/8% senior notes due 2018.

D.F. King & Co. (800 758-5378 or 212 269-5550) is information agent for the offer, and Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955) is dealer manager.

Pioneer Natural Resources is an oil and gas exploration and production company based in Dallas.

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