Tesoro gets needed consents to amend 6 5/8% notes and 6½% notes

By Susanna Moon

Chicago, Sept. 28 - Tesoro Corp. said investors tendered $236.88 million principal amount, or 52.64%, of its $450 million of outstanding 6 5/8% senior notes due 2015 and $294,619,000 principal amount, or 62.26%, or its $473,215,000 of outstanding 6½% senior notes due 2017, representing a majority of both series of notes, by the early tender deadline.

As a result, the company received enough consents to amend both series of notes and entered into a supplemental indenture for each note, which became operative upon payment for the notes.

The company exercised the early purchase option and accepted for purchase all of the notes tendered by the early tender date, which was 5 p.m. ET on Sept. 26, according to a press release.

As previously reported, for each $1,000 principal amount, the company paid $1,017.50 for the 6 5/8% notes and $1,035.00 for the 6½% notes. Each purchase price included an early tender payment of $30.00 for notes tendered by the early deadline.

Tesoro also paid accrued interest.

In addition, the company said it called for redemption all remaining outstanding notes on Nov. 1.

The tender offers will end at midnight ET on Oct. 11. They began on Sept. 13.

The company solicited consents to amend the note indentures to authorize the elimination of most of the restrictive covenants and some of the events of default.

The offer is conditioned on at least $925 million of debt financing, the receipt of consents from holders of a majority of notes and the execution and delivery of a supplemental indenture.

RBS Securities Inc. is the dealer manager (877 297-9832 or call collect 203 897-4825). The depositary and information agent is Global Bondholder Services Corp. (866 389-1500).

Tesoro is a San Antonio-based refiner and marketer of petroleum products.

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