(NYSE: EDE) The Empire District Electric Company (the “Company”) announced today that it is soliciting consents to amend a covenant of the indenture under which all of its First Mortgage Bonds were issued, including the following outstanding series: 7.20% Series due 2016, 6.375% Series due 2018, 4.65% Series due 2020, 7.00% Series due 2024, 5.875% Series due 2037, 5.20% Series due 2040, 5.20% Pollution Control Series due 2013 and 5.30% Pollution Control Series due 2013 (together, the “Bonds”). The consent solicitation commenced today and will expire at 5:00 p.m., New York City time, on June 9, 2011, unless extended or earlier terminated (the “Expiration Date”). Only holders of Bonds as of 5:00 p.m., New York City time, on May 27, 2011, the record date, will be eligible to consent. The consent solicitation requires that consents from at least 60% of the aggregate principal amount of Bonds outstanding be received and not revoked.
The purpose of the consent solicitation is to amend the dividend covenant set forth in the indenture to permit the making of any dividend, distribution or purchase made within 60 days after the related date of declaration or notice of such dividend, distribution or purchase if (i) on the date of declaration or notice, such dividend, distribution or purchase would have complied with the provisions of the indenture and (ii) as of the last day of the calendar month ended immediately preceding the date of such payment, the Company’s ratio of total indebtedness to total capitalization (after giving pro forma effect to the payment of such dividend, distribution, or purchase) was not more than 0.625 to 1.
Holders of the Bonds are referred to the Company’s Consent Solicitation Statement dated May 31, 2011 and the accompanying Consent Form, which are being mailed to the holders, for the detailed terms and conditions of the consent solicitation. The consent solicitation is subject to certain conditions as set forth in the Consent Solicitation Statement.
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