Copano Energy LLC's wholly owned subsidiary, Copano Energy Finance Corp., will redeem for cash US $178.5 million of its outstanding 7.125% senior notes due 2021.
An aggregate $510 million of the senior notes are outstanding as of Aug. 5. The redemption date will be Sept. 4. The notes are being called for redemption pursuant to the provisions of the indenture relating to the notes, which provisions allow the issuers to redeem up to 35% of the notes with the net cash proceeds of one or more equity offerings by the company. On Aug. 5, the company and Kinder Morgan Energy Partners LP (NYSE: KMP) entered into a membership interest purchase agreement pursuant to which the company will offer and sell to Kinder Morgan additional membership units representing membership interests of the company for a purchase price equal to or greater than the aggregate redemption payment, which equity offering will be consummated on or prior to the redemption date.
The issuers will pay a redemption price of $1,071.25 per $1,000 of the notes, plus any accrued and unpaid interest to Sept. 4.
A notice of partial redemption is being sent to all currently registered holders of the notes by the trustee, U.S. Bank National Association.
Payment of the redemption payment will be made on or after Sept. 4, upon presentation and surrender of the notes by mail to U.S. Bank National Association Corporate Trust Services. Unless the issuers default in making the redemption payment, interest on the notes or portion thereof called for redemption will cease to accrue on and after the redemption date and the only remaining right of the holders thereof is to receive the redemption payment upon surrender to U.S. Bank National Association of the notes.
Copano Energy LLC is a wholly owned subsidiary of Kinder Morgan Energy Partners LP, operates as a pipeline transportation and energy storage company in North America. The general partner of KMP is owned by Kinder Morgan Inc. (NYSE: KMI). Kinder Morgan owns and operates energy transportation and storage assets in the U.S. and Canada. The company is headquartered in Houston.
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