Specialty Foods offers to buy back, exchange exchangeable debentures

Some holders may participate in placement of new 8% notes, warrants

By Angela McDaniels

Tacoma, Wash., Jan. 12 - Specialty Foods Group, Inc. began a tender offer and exchange offer for its junior secured exchangeable debentures, and Specialty Foods Group Canada Holdings, Inc. began a tender offer for its junior secured exchangeable subordinated debentures.

In exchange for each C$1,000 principal amount of debentures tendered, Specialty Foods Group is offering (a) C$1,150 in cash or (b) an identical principal amount of 8% junior secured notes due June 30, 2014 and 0.04110997 warrants. Each warrant will entitle its holder to purchase one common share of Specialty Foods Group Parent, Inc. for C$1.00.

The company will also pay accrued interest for tendered debentures.

In its offer, Specialty Foods Group Canada is offering C$1,150 per C$1,000 principal amount of debentures.

Both offers will expire at midnight ET on Feb. 8.

The company will use cash on hand or its credit facilities to repurchase the debentures.

Private placement

Holders who participate in Specialty Foods Group Canada's offer who are also accredited investors will be able to purchase new notes and warrants in a private offering.

For a price of C$1,150, purchasers will receive C$1,000 principal amount of the new 8% notes and 0.04110997 warrants.

In order to participate in the private placement, a holder must purchase an amount of new notes and warrants in the private placement with a purchase price equal to the amount credited to that holder in repayment of that holder's Canadian debentures under the tender offer, exclusive of interest.

Specialty Foods makes processed meat products and is based in Hampton, Va.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.