Energy Partners to tender for 8¾% notes

By Laura Lutz

Washington, March 12 - Energy Partners, Ltd. plans to refinance all of its 8¾% senior notes due 2010 through a tender offer and consent solicitation for the notes.

The company will seek consents to amend the notes to eliminate substantially all restrictive covenants and some event-of-default provisions from the note indenture.

The tender payout will be 50 basis points over the yield of the relevant U.S. Treasury to Aug. 1, the earliest redemption date. A consent payment will be included in the payout.

The consent deadline is expected to be 10 business days after the offer launches.

Settlement of the offer will be conditioned on the receipt of consents from holders of a majority of the notes and the concurrent closing of an equity tender offer.

Banc of America Securities is expected to act as dealer manager. MacKenzie Partners, Inc. (800 322-2885 or collect 212 929-5500) is expected to act as information agent.

Energy Partners is a New Orleans-based oil and natural gas company.

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