Penn Virginia amends, extends tender offer for its 4.5% convertibles

By Susanna Moon

Chicago, April 6 - Penn Virginia Corp. said it amended the tender offer for its $230 million of 4.5% convertible senior subordinated notes due 2012 to state that the lender consent condition has been satisfied and that the company has waived the financing condition.

The tender offer will now run until midnight ET on April 12, extended from midnight ET on April 11, to give holders more time to tender their convertibles. The offer was originally set to end at midnight ET on April 4. It began on March 8.

As of 5 p.m. ET on April 5, holders had tendered about $225 million principal amount, or about 98%, of the convertibles. That figure is unchanged from 5 p.m. ET on April 4.

Penn Virginia said on April 4 that it secured consents from holders of about 98% of its 10.375% senior notes due 2016 for amendments allowing the company to complete the tender offer for its 4.5% convertibles.

The amendment will allow the company to purchase, repurchase, redeem, defease or otherwise acquire the convertibles and related call options and warrants.

The tender offer for the convertibles is subject to a minimum tender condition, a debt-financing condition and the consent of lenders with a majority of the outstanding commitments under Penn Virginia's revolving credit facility.

As announced on March 21, Penn Virginia increased the price it will pay in the tender for its 4.5% convertibles to $1,035.00 per $1,000 principal amount from $1,027.50.

Holders will also receive accrued interest up to but excluding the settlement date.

The dealer manager is J.P. Morgan Securities LLC (800 261-5767). The information agent is Global Bondholder Services Corp. (866 540-1500 or 212 430-3774).

Penn Virginia is an independent natural gas and oil company based in Radnor, Pa.

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