Energy Partners prolongs tender offer for 8¾% notes

By Jennifer Chiou

New York, April 10 - Energy Partners Ltd. announced the extension of its tender offer for its 8¾% senior notes due 2010 to 5 p.m. ET on May 3.

The tender offer was previously set to expire at midnight ET on April 20.

As of the early deadline at 5 p.m. ET on April 9, holders of $143.43 million, or 95.62%, of the notes had tendered their securities.

Consents from holders of a majority of notes previously allowed the company to amend the note indenture to eliminate substantially all of the restrictive covenants and some events of default. The company has executed the supplemental indenture.

For each $1,000 principal amount of notes, the company said it will pay the present value of $1,043.75, the redemption price for the notes on Aug. 1 - the notes' first call date - discounted using the 3 7/8% Treasury note due July 31, 2007 plus a fixed spread of 50 basis points.

The payout includes a $30.00 consent payment for those who tendered by the consent deadline.

Settlement of the offer is conditioned on the closing of the company's equity self-tender offer, completion of sufficient financing as well as the receipt of consents from holders of a majority of notes.

Banc of America Securities LLC is the dealer manager (contact High Yield Special Products at 888 292-0070 or call collect 704 388-9217). Mackenzie Partners, Inc. is the information agent and depositary (800 322-2885 or call collect 212 929-5500).

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

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