Stone Energy Corporation Announces Tender Offer for Its 6 3/4% Senior Subordinated Notes due 2014

    Stone Energy Corporation Announces Tender Offer for Its 6 3/4% Senior
                         Subordinated Notes due 2014

PR Newswire

LAFAYETTE, La., Oct. 22, 2012

LAFAYETTE, La., Oct. 22, 2012 /PRNewswire/ -- Stone Energy Corporation (NYSE:
SGY) ("Stone") today announced it has commenced a cash tender offer and
consent solicitation with respect to any and all of the $200,000,000 aggregate
outstanding principal amount of its 6¾% Senior Subordinated Notes due 2014
(the "Notes").  In conjunction with the tender offer, Stone is soliciting
noteholder consents to effect certain amendments to the indenture governing
the Notes.

Stone will pay the purchase price for Notes validly tendered and accepted for
purchase, as well as accrued and unpaid interest up to, but not including, the
applicable payment date.  The tender offer is scheduled to expire at 11:59
p.m., New York City time, on November 20, 2012, unless such date is extended
by Stone or earlier terminated (the "Expiration Time").  Noteholders who
provide consents to the proposed amendments will receive a consent payment per
$1,000 principal amount of Notes tendered and accepted for purchase pursuant
to the offer, if they provide their consents prior to 5:00 p.m., New York City
time, on November 5, 2012, unless such date is extended by Stone (the "Consent
Expiration").  The total consideration to be paid for each $1,000 principal
amount of the Notes validly tendered and not validly withdrawn before the
Consent Expiration will be $1,005.00, which includes a consent payment of
$30.00 per $1,000 principal amount of the Notes, plus accrued and unpaid
interest up to the date of payment for such Notes.  Noteholders tendering
after the Consent Expiration and prior to the Expiration Time will be eligible
to receive only $975.00 per $1,000 principal amount of Notes that are validly
tendered and not validly withdrawn, plus accrued and unpaid interest up to the
date of payment for such Notes.

Stone's obligations to accept for purchase and to pay for Notes in the tender
offer are conditioned on, among other things, the following:

  o The tender of Notes representing at least a majority of the principal
    amount of Notes outstanding, which is necessary to execute the
    supplemental indenture that will effect the proposed amendments to the
    indenture governing the Notes; and
  o Stone's having completed a capital markets transaction with gross proceeds
    to it of at least $225.0 million, on terms acceptable to it.

Stone has retained BofA Merrill Lynch to serve as the Dealer Manager and
Solicitation Agent for the tender offer and the consent solicitation. 
Requests for documents may be directed to D.F. King & Co., Inc., the
Information Agent, at (800) 269-6427.  Questions regarding the tender offer
and consent solicitation may be directed to BofA Merrill Lynch at (888)
292-0070 (toll free) or (980) 387-3907 (collect).

This press release is not an offer to purchase, a solicitation of an offer to
sell or a solicitation of consents with respect to any securities.  The tender
offer and consent solicitation is being made solely by the Offer to Purchase
and Consent Solicitation Statement dated October 22, 2012.

Stone Energy is an independent oil and natural gas exploration and production
company headquartered in Lafayette, Louisiana with additional offices in New
Orleans, Houston and Morgantown, West Virginia.  Our business strategy is to
leverage cash flow generated from existing assets to maintain relatively
stable GOM shelf production, profitably grow gas reserves and production in
price-advantaged basins such as Appalachia and the Gulf Coast Basin, and
profitably grow oil reserves and production in material impact areas such as
the deep water GOM and onshore oil.  For additional information, contact
Kenneth H. Beer, Chief Financial Officer, at 337-521-2210 phone, 337-521-9880
fax or via e-mail at CFO@StoneEnergy.com.

 

SOURCE Stone Energy Corporation

Website: http://www.stoneenergy.com