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Puget Sound Energy launches $250M cash tender offer, consent solicitation

Puget Sound Energy Inc. on March 5 announced the launch of a cash tender offer to purchase $250 million of its 6.974% series A enhanced junior subordinated notes due June 1, 2067.

In connection with the tender offer, the Puget Holdings LLC subsidiary also initiated a consent solicitation for its 6.274% senior notes due March 15, 2037, from holders of record at 5:00 p.m. ET on March 2. The consent solicitation is to terminate the replacement capital covenant dated June 4, 2007, and Puget Sound Energy's obligations in connection with the 6.974% notes, according to a March 5 release.

The tender offer will expire at 5:00 p.m. ET on April 2, and the consent solicitation will expire at 5:00 p.m. ET on March 16, unless extended or terminated earlier by the company.

Holders who validly tender and do not subsequently validly withdraw their notes at or prior to 5 p.m. ET on March 16 will receive a total consideration of $1,005.00 per $1,000 principal amount of the 2067 notes, including an early tender premium of $30 per $1,000 principal amount of the 2067 notes.

The Bellevue, Wash.-headquartered utility is soliciting consents from the holders of the 2037 notes to terminate the replacement capital covenant due to restrictions related to repurchases, redemptions and repayments of the 2067 notes. Receiving the consents is one of the conditions to the consummation of the tender offer and the consent solicitation.

Barclays Capital is serving as the solicitation agent, while D.F. King & Co. Inc. is acting as tabulation agent for the consent solicitation.