Stone Energy Corporation Announces Successful Results of the Tender Offer for
Its 6 3/4% Senior Subordinated Notes due 2014
LAFAYETTE, La., Nov. 6, 2012
LAFAYETTE, La., Nov. 6, 2012 /PRNewswire/ --
Stone Energy Corporation (NYSE: SGY) ("Stone") today announced that it had
received, as of 5:00 p.m., New York City Time, on November 5, 2012 (the
"Consent Expiration") tenders and consents from the holders of approximately
$136.1 million in aggregate principal amount, or approximately 68%, of its
outstanding 6¾% Senior Subordinated Notes due 2014 (the "Notes") in connection
with its previously announced cash tender offer and consent solicitation for
the Notes, which commenced on October 22, 2012. In connection with the tender
offer and related consent solicitation for the Notes, Stone has entered into a
supplemental indenture to the indenture governing the Notes to, among other
things, eliminate substantially all of the restrictive covenants and certain
event of default provisions in the indenture.
The tender offer for the Notes is scheduled to expire at 11:59 p.m., New York
City Time, on November 20, 2012 (the "Expiration Time"). Notes tendered after
the Consent Expiration but prior to the Expiration Time will not receive a
consent payment. Notes tendered prior to the Consent Expiration may no longer
Subject to the closing of Stone's pending public offering of new senior notes
on November 8, 2012 and the satisfaction or waiver of other conditions to the
tender offer, holders who tendered their Notes prior to the Consent Expiration
will receive a consent payment of $30.00 per $1,000 principal amount of the
Notes tendered and accepted for purchase, in addition to the tender offer
consideration of $975.00 per $1,000 principal amount of Notes, plus accrued
and unpaid interest to the date of payment. The initial settlement date for
Notes tendered prior to the Consent Expiration is expected to be November 8,
Any Notes not tendered and purchased pursuant to the tender offer will remain
outstanding, and the holders will be subject to the terms of the supplemental
indenture even though they did not consent to the amendments. However, Stone
intends to redeem on or about December 17, 2012 all outstanding Notes not
tendered prior to the Expiration Time.
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
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