MarkWest Energy launches tender offers for two 6 7/8% notes series

By Marisa Wong

Madison, Wis., Oct. 18 - MarkWest Energy Partners, LP has started cash tender offers for any and all of its outstanding $225 million of 6 7/8% series A senior notes due 2014 and $150 million of 6 7/8% series B senior notes due 2014, according to a news release.

The company is also soliciting consents from noteholders to certain proposed amendments, eliminating substantially all of the restrictive covenants and certain events of default to the indentures governing the series A and series B notes.

The offers are scheduled to expire at 11:59 p.m. ET on Nov. 16.

Holders who tender their notes and deliver their consents before the consent expiration, 5 p.m. ET on Nov. 1, will receive the total consideration.

The total consideration is $1,025.42 per $1,000 principal amount of notes tendered, which includes a consent payment of $30.00 per $1,000 of notes.

Holders tendering after the consent expiration will receive only the tender offer consideration of $995.42 for each $1,000 of notes, which is equal to the total consideration less the consent payment.

MarkWest will also pay accrued interest from the most recent interest payment date to, but not including, the payment date.

Payment for notes tendered before the consent expiration will occur on Nov. 2, and payment for notes tendered after the consent expiration but before the expiration time is expected to occur on Nov. 17.

Holders who tender their notes will be deemed to have delivered their consents.

MarkWest said it will execute a supplemental indenture amending the notes once it receives consents from a majority of holders.

Tendered notes may only be withdrawn and consents revoked before the consent expiration.

According to the release, the offers are subject to, among other conditions, the receipt of consents from a majority of holders of the notes, the execution of a supplemental indenture effecting the amendments and the settlement of a new capital markets debt financing to raise proceeds to fund the offers.

Wells Fargo Securities (866 309-6316 or 704 715-8341) is the dealer manager and solicitation agent for the offers. D.F. King & Co. (800 431-9643 or 212 269-5550 for banks and brokers) is the depositary and information agent.

MarkWest is a Denver-based natural gas, natural gas liquids and crude oil company.

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