Northern Tier announces early tender offer results for 10½% notes

By Marisa Wong

Madison, Wis., Nov. 6 - Northern Tier Energy LLC said that as of 5 p.m. ET on Nov. 1 it had sufficient tenders and consents from holders of its 10½% senior secured notes due 2017 to amend the indenture governing the notes.

On Nov. 2 the company entered into a supplemental indenture eliminating most of the restrictive covenants and certain default provisions under the notes, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The consent expiration was previously extended to Nov. 1 from Oct. 30 due to the hurricane.

As reported, tenders for $253,057,000 principal amount of the notes were received by the original early deadline. That amount represented more than the majority needed to amend the indenture. No additional notes were tendered as of Nov. 1.

The company is offering $1,150 for each $1,000 principal amount of the debt, a total that includes a $30 consent payment for holders who tendered by the extended consent deadline.

Northern Tier will also pay accrued interest up to but excluding the settlement date.

The offer is still set to expire at 11:59 p.m. ET on Nov. 14. It began on Oct. 17.

Funding for the tender will come from a new senior secured debt offering. The company priced $275 million of 7 1/8% eight-year notes on Nov. 2.

Goldman Sachs & Co. is dealer manager (800 828-3182 or call collect 912 902-5183). Global Bondholder Services Corp. is tender and information agent (866 294-2200).

Northern Tier is a Ridgefield, Conn.-based downstream energy company. It was established to own and operate the St. Paul Park Refinery as well as a retail network of SuperAmerica brand convenience stores and a 17% equity interest in the Minnesota Pipeline.

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