OEI reducing more debt...
Tuesday November 9, 4:31 pm Eastern Time
SOURCE: Ocean Energy, Inc.
Ocean Energy Commences Cash Tender Offers for Its Outstanding 10.375% Senior Subordinated Notes Due 2005 and 9
3/4% Senior Subordinated Notes Due 2006
HOUSTON, Nov. 9 /PRNewswire/ -- Ocean Energy, Inc. (NYSE: OEI - news) announced today that it has commenced cash tender offers (the ``Offers') for all of its outstanding 10.375% Senior Subordinated Notes due 2005, CUSIP No. 674812 D4 (the ``10.375% Notes') and 9 3/4% Senior Subordinated Notes due 2006, CUSIP No. 34039C AB3 (the ``9 3/4% Notes' and together with the 10.375% Notes, the ``Notes'). The expiration date for the Offers is 12:00 midnight, New York City time, on Wednesday, December 8, 1999 (the ``Expiration Date'), unless extended with respect to the applicable series of Notes.
In connection with the Offers, Ocean Energy is soliciting consents (the ``Consent Solicitations') from holders of the
Notes to certain proposed amendments to the indenture (the ``Indenture') governing each series of Notes. As to each series of Notes, the proposed amendments will amend or eliminate most of the financial and operating covenants and certain default provisions contained in the Indenture governing such series of Notes. Upon consummation of the Offer relating to a series of Notes, each holder of Notes of that series will receive as part of the total consideration payable to such holder a consent payment (the ``Consent Payment') equal to $30 for each $1,000 principal amount of Notes so long as tenders of Notes and related consents are received by 5:00 p.m., New York City time, on Tuesday, November 23, 1999 (the ``Consent Date') or such later date and time to which the Consent Date is extended with respect to the applicable series of Notes.
In order to tender Notes and receive the cash payment therefore, holders of a series of Notes must grant their consent to the proposed amendments to the Indenture governing such series of Notes. Holders of Notes may not consent to the proposed amendments without tendering their Notes. Notes tendered in the Offers cannot be withdrawn and consents relating to such tendered Notes cannot be revoked subsequent to the Consent Date. The total consideration for each $1,000 principal amount of Notes validly tendered pursuant to the Offers and for which consents to the proposed amendments to the Indenture governing such series are timely given will be:
-- In the case of the 10.375% Notes, the price based on the redemption price of $1,051.90 on the first redemption date of October 15, 2000, that would result from a yield from the date that such Notes are paid for by Ocean Energy to such redemption date equal to the sum of (A) the yield on the 5 3/4% U.S. Treasury Note due October 31, 2000, as calculated by the Dealer Manager in accordance with standard market practice, based on the bid price therefore as of 2:00 p.m., New York City time, on the second business day immediately preceding the Expiration Date plus (B) 62.5 basis points (such price being rounded to the nearest cent per $1,000 principal amount of Notes); and
-- In the case of the 9 3/4% Notes, the price based on the redemption price of $1,048.75 on the first redemption date of October 1, 2001, that would result from a yield from the date that such Notes are paid for by Ocean Energy to such redemption date equal to the sum of (A) The yield on the 5 7/8% U.S. Treasury Note due October 31, 2001, as calculated by the Dealer Manager in accordance with standard market practice, based on the bid price therefore as of 2:00 p.m., New York City time, on the second business day immediately preceding the Expiration Date plus (B) 62.5 basis points (such price being rounded to the nearest cent per $1,000 principal amount of Notes).
The total consideration payable to holders of a series of Notes includes the Consent Payment. Holders will not receive the Consent Payment unless they tender their Notes by 5:00 p.m. on the applicable Consent Date. Ocean Energy will pay accrued and unpaid interest on all Notes tendered and accepted for payment at the current rate under the Indenture governing such Notes to, but not including, the date of payment for such Notes.
The Offers and Consent Solicitations are subject to a number of conditions which are set forth in the Offer to Purchase and Consent Solicitation Statement. Credit Suisse First Boston Corporation is the dealer manager and solicitation agent and MacKenzie Partners, Inc. is acting as information agent with respect to the Offers.
Information concerning the Offers, the Consent solicitations, the current yield on the reference securities and the consideration to be paid in the Offers will be available from Credit Suisse First Boston at (800) 820-1653.
Requests for assistance or additional sets of materials relating to the Offers should be directed to MacKenzie Partners, Inc. at (800) 322-2885.
This announcement is not an offer to purchase, a solicitation of an offer to sell or a solicitation of consents with respect to the Notes. The Offers and Consent Solicitations are being made solely pursuant to the Offer to Purchase and Consent Solicitation Statement dated November 9, 1999 and the related Consent and Letter of Transmittal, as the same may be amended from time to time.
SOURCE: Ocean Energy, Inc. |
