Forbes Energy units move up expiration of tender offer for 11% notes

By Angela McDaniels

Tacoma, Wash., May 25 - Forbes Energy Services Ltd. subsidiaries Forbes Energy Services LLC and Forbes Energy Capital Inc. moved the expiration date of the tender offer for their $192.5 million of 11% senior secured notes due 2015 to 11:59 p.m. ET on June 6 from 5 p.m. ET on June 7.

The deadline was moved in order to coincide with the targeted closing date for the company's new issue of notes, according to a company news release. Forbes priced $280 million of 9% senior notes due 2019 on May 24.

The companies are also soliciting consents to amend the note indenture to eliminate most of the restrictive covenants and event-of-default provisions as well as to modify the terms of any intercreditor agreement. Those who tender their notes are deemed to have delivered consents.

As previously reported, holders had tendered $187,932,000 principal amount, or 97.6%, of the notes as of 5 p.m. ET on May 20, which was the consent date.

The consents received were enough to adopt the proposed amendments. They will become effective once the tendered notes are purchased.

The purchase price is $1,127.50 for each $1,000 principal amount of notes, including a consent payment of $30.00 for each note tendered by the consent date.

Holders will also receive accrued interest.

The tender offer began May 10.

Jefferies & Co., Inc. (888 708-5831 or 203 708-5831) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 290-6426) is the information agent.

Forbes Energy Services is an Alice, Texas-based oilfield services company.

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