Key Energy tenders, seeks consents for $425 million of 8 3/8% notes

By Susanna Moon

Chicago, Feb. 14 - Key Energy Services, Inc. said it began a cash tender offer and consent solicitation for the $425 million outstanding principal amount of its 8 3/8% senior notes due 2014.

Key Energy said it will pay $1,090 per $1,000 principal amount of notes tendered by 5 p.m. ET on Feb. 28, the consent expiration.

The total payment includes a consent payment of $30 per $1,000 principal amount.

Holders who tender their notes after the consent date but by midnight ET on March 14, the expiration date, will receive the total payment less the consent fee.

The company is soliciting consents to amend the indenture governing notes.

The tender offer is conditioned on the tender of at least a majority of the notes and Key Energy having received replacement financing.

Key Energy said it plans to fund the repurchase of the notes with the proceeds of one or more capital markets debt offerings and borrowings under its credit facility.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) is the dealer manager and solicitation agent for the tender offer and the consent solicitation. Global Bondholder Services Corp. (866 387-1500 or 212 430-3774) is the information agent.

Key Energy Services is a rig-based well services provider based in Houston.

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