Avista Corp. Commences Consent Solicitation With Respect to Its 9.75 Percent Senior Notes Due June 1, 2008
July 10 2006 - 8:30AM
PR Newswire (US)
SPOKANE, Wash., July 10 /PRNewswire-FirstCall/ -- Avista Corp.
(NYSE:AVA) announced today that it is soliciting consents from all
holders of its 9.75 percent Senior Notes due June 1, 2008, CUSIP
No. 05379BAC1 (the "Notes"), to a one-time dividend of the stock of
Avista Capital, Inc., which is the holding company of Avista
Corp.'s non-utility businesses. Avista Corp. is soliciting consents
from Note holders of record as of July 7, 2006. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040128/SFW031LOGO ) As
previously reported, Avista Corp. is in the process of forming a
holding company, which has already been approved by the holders of
Avista Corp.'s common stock and by the Federal Energy Regulatory
Commission. Avista Corp. has not yet received approval from all of
the state utility commissions. After the holding company is formed,
Avista Corp., subject to the approval of its Board of Directors,
would distribute all the stock of Avista Capital to its new
corporate parent and sole shareholder. This would effect the
structural separation of the non-utility businesses of Avista
Corp.'s subsidiaries from the regulated utility business. The
purpose of the consent solicitation is to solicit consents to a
one- time waiver of compliance with certain covenants contained in
the indenture governing the Notes so as to permit the Avista
Capital dividend. The waiver will become effective if holders of a
majority in principal amount of the Notes deliver their consent.
The solicitation will expire at 5:00 p.m. Eastern daylight time on
July 20, 2006, unless extended or terminated by Avista Corp. Note
holders of record as of July 7, 2006, will be able to revoke their
consents until valid consents from holders of a majority in
aggregate principal amount of the outstanding Notes are received by
Avista Corp. and the proposed waiver becomes effective, which may
occur before the expiration of the solicitation. If the proposed
waiver becomes effective and the conditions to the payment of the
consent fee described in the consent solicitation statement
relating to the solicitation are satisfied or waived, Avista Corp.
will pay a consent fee of $1.25 in cash per $1,000 principal amount
of Notes for which valid consents are received prior to the
expiration of the solicitation and not revoked prior to the
effectiveness of the waiver. The detailed terms and conditions of
the consent solicitation are contained in a consent solicitation
statement dated July 10, 2006. Goldman, Sachs & Co. will act as
Solicitation Agent for the consent solicitation. Georgeson
Shareholder Communications, Inc., will act as the Information
Agent. Requests for documents may be directed to Georgeson
Shareholder Communications, Inc., by telephone at (800) 509-1303
(toll-free) or (212) 440-9800. Questions regarding the consent
solicitation may be directed to Goldman, Sachs & Co. at (800)
828-3182 (toll-free) or (212) 357-7867. This press release contains
forward-looking statements based on current management
expectations. Numerous factors, including those related to market
conditions and those detailed from time to time in Avista Corp.'s
filings with the Securities and Exchange Commission, may cause
results to differ materially from those anticipated in the
forward-looking statements. Many of the factors that will determine
Avista Corp.'s future results are beyond the ability of Avista
Corp. to control or predict. These statements are subject to risks
and uncertainties and, therefore, actual results may differ
materially. Readers should not place undue reliance on
forward-looking statements, which reflect management's views only
as of the date hereof. Avista Corp. undertakes no obligation to
revise or update any forward-looking statements, or to make any
other forward-looking statements, whether as a result of new
information, future events or otherwise. Avista Corp. is an energy
company involved in the production, transmission and distribution
of energy as well as other energy-related businesses. Avista
Utilities is a company operating division that provides service to
338,000 electric and 297,000 natural gas customers in three western
states. Avista Corp.'s non-regulated subsidiaries include Avista
Advantage and Avista Energy. Avista Corp.'s stock is traded under
the ticker symbol "AVA." For more information about Avista Corp.,
please visit http://www.avistacorp.com/. NOTE: Avista Corp. and the
Avista Corp. logo are trademarks of Avista Corporation.
http://www.newscom.com/cgi-bin/prnh/20040128/SFW031LOGO
http://photoarchive.ap.org/ DATASOURCE: Avista Corp. CONTACT:
media, Jessie Wuerst, +1-509-495-8578, or ; or investors, Jason
Lang, +1-509-495-2930, or , both of Avista Corp., or Avista 24/7
Media Access, +1-509-495-4174 Web site: http://www.avistacorp.com/
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