Alliant Energy starts tender offer for three series of exchangeables

By Jennifer Chiou

New York, Sept. 16 - Alliant Energy Corp. announced the start of a cash tender offer to purchase any and all of Alliant Energy Resources, Inc.'s outstanding 7.25% exchangeable senior notes due 2030 with Cusip Nos. 018803403, 018803205 and 018803304.

In all, there is $402,500,040 of outstanding notes. Each has a principal amount of $67.75.

The company is also soliciting consents to amend the notes' indenture to:

• Waive an alleged default asserted in a notice of default from the trustee;

• Rescind the notice of acceleration from the trustee, which declared the full principal amount of the notes due and payable;

• Acknowledge Alliant Energy's assumption of the obligations of Alliant Energy Resources under the indenture as well as Alliant Energy Resources' release from its obligations under the indenture;

• Direct the trustee to dismiss litigation;

• Approve amendments to the indenture that would eliminate substantially all of the covenants and some of the events of default contained in the indenture; and

• Authorize the trustee and Alliant Energy to execute a supplemental indenture to the indenture.

The offer ends at 5 p.m. ET on Oct. 15.

The early tender deadline is 5 p.m. ET on Sept. 28.

Those who tender must also deliver consents.

For each tendered note, the company said it will pay $40.00, including an early tender payment of $2.00 for those who tender by the early deadline.

Alliant Energy said it intends to finance the tender offer with borrowings under a $200 million term loan facility it entered into in connection with the offer as well as with cash on hand.

If Alliant Energy purchases notes in the offer, it will incur a non-cash charge based on the aggregate principal amount of notes purchased because the securities are carried in its books at $6.60 per note, or $39 million in the aggregate.

If all notes are tendered and purchased, then Alliant Energy estimates it would incur an after-tax charge of roughly $125 million, or $1.13 per share, in the third quarter of 2009.

Citi (800 558-3745) is the dealer manager. Global Bondholder Services Corp. (866 807-2200 or call collect 212 430-3774) is the information agent.

Alliant Energy is a Madison, Wis., utility holding company.

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