Range Resources gives early tender results for 6 3/8%, 7½% notes

By Marisa Wong

Madison, Wis., May 25 - Range Resources Corp. announced that as of 5 p.m. ET on May 24, the consent expiration date, it had received tenders and consents from holders of 72.61% of its $150 million outstanding 6 3/8% senior subordinated notes due 2015 and 79.51% of its $250 million outstanding 7½% senior subordinated notes due 2016.

Range Resources began tender offers and consent solicitations for the notes on May 11.

The company said it will execute supplemental indentures for each series of notes that will eliminate most of the covenants and some default provisions in the original note indentures.

Each supplemental indenture will not be effective until a majority in principal amount of each series of notes has been purchased, which was expected to occur on May 25.

Range's purchase of the notes is subject to a number of conditions, including the closing of a previously announced public offering of $500 million 5¾% senior subordinated notes due 2021, which was also scheduled for May 25.

For each $1,000 principal amount, the total consideration will be $1,023.75 for the 6 3/8% notes and $1,040.00 for the 7½% notes. The total payment includes a consent premium of $20.00 per note tendered by the consent deadline.

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

Holders who tender their notes after the consent expiration but before 11:59 p.m. ET on June 8, the expiration of the offers, will be entitled to $1,003.75 for each $1,000 of 6 3/8% notes and $1,020.00 for each $1,000 of 7½% notes, plus accrued interest up to but excluding the payment date.

Any notes not tendered and purchased in the offers will remain outstanding.

J.P. Morgan Securities LLC (800 261-5767) is the dealer manager and solicitation agent. MacKenzie Partners Inc. (800 322-2885) is the depositary and information agent.

Range Resources is a Fort Worth-based independent gas and oil company.

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