PetroQuest Energy Announces Receipt Of Requisite Consents With Respect To Its Tender Offer And Consent Solicitation For Its 10 3/8% Senior Notes Due 2012
LAFAYETTE, La., Aug. 19 /PRNewswire-FirstCall/ -- PetroQuest Energy, Inc. (NYSE: PQ) announced today that it had received, as of 5:00 p.m., New York City time, on August 18, 2010 (the "Consent Date"), tenders and consents from holders of over 73% of the aggregate principal amount of its outstanding 10 3/8% Senior Notes due 2012 (the "Notes") in connection with its previously announced cash tender offer (the "Tender Offer") and consent solicitation (the "Consent Solicitation," and together with the Tender Offer, the "Offer") for any and all of the Notes, which commenced on August 5, 2010 and is described in the Offer to Purchase and Consent Solicitation Statement dated August 5, 2010 (the "Offer to Purchase").
The Company intends to execute a supplemental indenture (the "Supplemental Indenture") to the indenture governing the Notes that would, among other things, eliminate substantially all of the covenants and events of default contained therein. The Supplemental Indenture will not become operative until a majority in aggregate principal amount of the outstanding Notes has been purchased by the Company pursuant to the terms of the Offer, which is expected to occur today, August 19, 2010.
The Company's obligation to accept for purchase, and to pay for, any Notes pursuant to the Offer is subject to a number of conditions that are set forth in the Offer to Purchase, including the closing today of the Company's previously announced public offering of $150 million aggregate principal amount of 10% Senior Notes due 2017. Subject to the satisfaction or waiver of these conditions, on August 19, 2010, all holders who validly tendered (and did not validly withdraw) their Notes prior to the Consent Date will receive total consideration equal to $1,028.44 per $1,000 principal amount of the Notes, which includes a consent payment of $2.50 per $1,000 principal amount of the Notes, plus any accrued and unpaid interest on the Notes up to, but not including, the payment date for such Notes accepted for purchase.
Holders who tender (and do not validly withdraw) their Notes after the Consent Date and prior to the expiration of the Offer, will be entitled to receive consideration equal to $1,025.94 per $1,000 principal amount of the Notes, plus any accrued and unpaid interest on the Notes up to, but not including, the payment date for such Notes accepted for purchase. Holders of Notes tendered after the Consent Date will not receive a consent payment. The Offer will expire at 11:59 p.m., New York City time, on September 1, 2010, unless extended by the Company in its sole discretion.Any Notes not tendered and purchased pursuant to the 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.
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