Transmeridian extends exchange offer for 12% notes

By Jennifer Chiou

New York, Oct. 29 - Transmeridian Exploration Inc. said it extended its exchange offer for its $290 million of 12% senior secured notes due 2010 to 5 p.m. ET on Nov. 14 from Oct. 28.

As of 5 p.m. ET on Oct. 28, holders of $244.19 million of notes had tendered their securities.

On Oct. 24, the company executed a supplemental indenture governing the notes.

Transmeridian previously said that as of 5 p.m. ET on Oct. 23, a majority of holders had delivered consents to amend the notes.

At Sept. 10, the company had received tenders and consents from holders of $30.15 million of the notes. The figure was $34.01 million on Aug. 22 and $34.92 million on Aug. 15.

The exchange offer began on July 23.

The Houston-based energy company previously said it is offering $101 in cash and $900 of new 12% senior secured notes due 2010 for each $1,000 principal amount of existing notes. The cash amount includes a $30 consent payment for notes tendered by the consent deadline.

The new notes will be identical to the existing notes but will not include the right to have the securities repurchased upon the closing of the transactions between Transmeridian and United Energy Group Ltd.

Notes cannot be tendered without delivering consents.

Conditions to the exchange include the receipt of tenders for at least 90% of the notes, excluding any held by United Energy, giving a required response of at least $222.2 million, and successful completion of a tender offer to be conducted by United Energy for Transmeridian's senior and junior preferred stock.

Successful completion of the exchange offer and consent solicitation is a condition to the completion of the transactions between Transmeridian and United Energy.

Only qualified institutional buyers under Rule 144A, institutional accredited investors under Regulation D or non-U.S. persons may participate.

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