KANSAS CITY, Mo., June 26, 2006 (PRIMEZONE) -- Aquila, Inc. (NYSE:ILA) today announced the expiration, as of 12:00 midnight, New York City time, on June 23, 2006 (the "Expiration Date"), of its cash tender offer (the "Offer") for up to $350 million aggregate principal amount of senior notes pursuant to its previously announced cash tender offer for certain of its outstanding senior notes (the "Notes"). In the cash tender offer, $500,763,000 in aggregate principal amount of Notes were validly tendered and not validly withdrawn on or before the Expiration Date, as specified pursuant to the terms of the Offer.
"We are pleased with the results of this tender offer, which reduces our debt and interest expense," said Rick Dobson, Aquila's Chief Financial Officer. "This transaction will enhance the company's credit profile and moves us another step forward in completing our repositioning plan."
Pursuant to the Offer to Purchase, dated May 12, 2006, as amended, Aquila accepted for purchase the tendered Notes listed in the table below:
Principal Amount
Accepted for
Principal Principal Purchase Final Acceptance
Title of Amount Amount as of 12:00 Proration Priority
Security Outstanding Tendered midnight Factor Level
-------- ----------- -------- on June 23, -------- --------
2006
------
6.700% Notes
due $85,900,000 $84,490,000 $84,490,000 N/A 1
10/15/2006
8.200% Notes
due $36,905,000 $22,309,000 $22,309,000 N/A 2
01/15/2007
7.625% Notes
due $199,000,000 $130,511,000 $130,511,000 N/A 3
11/15/2009
9.950% Notes
due $250,000,000 $118,621,000 $112,690,000 4.9% 4
02/01/2011
7.750% Notes
due $197,000,000 $144,832,000 $0 N/A 5
06/15/2011
Citigroup Corporate and Investment Banking is the Dealer Manager for the tender offer. Global Bondholder Services Corporation is the Information Agent and Depository. This press release is neither an offer to purchase nor a solicitation of an offer to sell the Notes. Such an offer is made only by the Offer to Purchase, and the information in this news release is qualified by reference to the Offer to Purchase. Persons with questions concerning the offer should contact the Dealer Manager at (212) 723-6106 or toll-free at (800) 558-3745, or the Information Agent at (212) 431-3774 or toll-free at (866) 294-2200.
Based in Kansas City, Missouri, Aquila operates electric and natural gas transmission and distribution utilities serving 1.2 million customers in communities in Colorado, Iowa, Kansas, Minnesota, Missouri and Nebraska. At March 31, 2006, Aquila had total assets of $4.2 billion. More information is available at www.aquila.com.
The Aquila, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1753