Amerada Hess Announces Partial Tender Offer.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Amerada Hess Corporation The Hess Corporation (NYSE: HES) is an integrated oil company based in New York City. The company changed its name from Amerada Hess as of May 8, 2006. The company explores, produces, transports, and refines oil. (NYSE NYSE See: New York Stock Exchange :AHC AHC Appalachian Hardwood Center AHC American Heritage Center (University of Wyoming, Laramie, WY) AHC American Horse Council AHC Association for History and Computing AHC Australian Heritage Commission AHC Assault Helicopter Company ) today commenced a partial tender offer (the "Offer") for up to $150,000,000 of the $284,390,000 currently outstanding aggregate principal amount of its 7.375% Notes due 2009 (CUSIP CUSIP See: Committee on Uniform Securities Identification Procedures CUSIP See Committee on Uniform Securities Identification Procedures. No. 023551AE4) (the "Securities"). The Offer for the Securities commenced on Tuesday, November 8, 2005, and will expire at 9:00 A.M., New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. time, on Thursday, December 8, 2005, unless earlier extended or terminated by Amerada Hess (the "Expiration Time Expiration time The time of day by which all exercise notices must be received on the expiration date. Technically, the expiration time is currently 11:59AM on the expiration date, but public holders of option contracts must indicate their desire to exercise no later than 5:30PM on "). As described in more detail in the Offer to Purchase, dated November 8, 2005, the purchase price to be paid in the Offer for each $1,000 principal amount of Securities tendered and accepted for payment pursuant to the Offer will be determined by reference to a cash amount (the "Total Consideration") calculated in a manner intended to result in a yield to maturity equal to the yield to maturity of the 3.375% U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. reference security due October 15, 2009 on November 18, 2005 plus 55 basis points. Holders who validly tender their Securities at or prior to 5:00 p.m., New York City time, on Tuesday, November 22, 2005 (the "Early Participation Date"), will receive the Total Consideration. Holders who validly tender their Securities after the Early Participation Date but prior to the Expiration Time will not be entitled to receive an early participation payment equal to $20 per $1,000 principal amount of Securities (the "Early Participation Payment"), and thus will receive the Total Consideration minus the Early Participation Payment. In both cases, holders will also receive accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. to, but not including, the settlement date. Settlement of the Offer is expected to occur promptly following the Expiration Time. Holders who tender Securities prior to the Early Participation Date may withdraw those Securities at any time prior to, but not on or after, the Early Participation Date. Holders who tender Securities after the Early Participation Date may not withdraw their Securities at any time. If more than $150,000,000 aggregate principal amount of the Securities are validly tendered, not withdrawn and accepted for payment pursuant to the Offer, the Securities will be purchased from the holders on a pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. basis based upon the amounts tendered. The Offer is made upon the terms and subject to the conditions set forth in the Offer to Purchase documents dated November 8, 2005. The Offer will be funded with a combination of cash on hand and the use of existing credit facilities. We are making the Offer as part of our continuing strategy to optimize debt maturities and reduce financing costs. Our total debt level at the end of 2005 is not expected to be materially impacted as a result of the Offer. Goldman, Sachs & Co. will act as lead Dealer Manager for the Offer and J.P. Morgan Securities Inc. will act as co-Dealer Manager for the Offer. Questions regarding the Offer may be directed to Goldman, Sachs & Co. at (212) 357-7867 (collect) or (800) 828-3182 (toll free) or to J.P. Morgan Securities Inc. at (212) 834-4388 (collect) or (866) 834-6666 (toll free). To request additional documents, please contact D.F. King & Co., Inc., the Information Agent for the Offer (bankers and brokers call collect at (212) 269-5550, others call toll free at (800) 431-9633). About Amerada Hess Corporation Amerada Hess, headquartered in New York, is a global integrated energy company engaged in the exploration for and the production, purchase, transportation and sale of crude oil and natural gas, as well as the production and sale of refined petroleum products. |
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