Corning gives final results of tender offer for three notes series

By Toni Weeks

San Diego, Nov. 27 - Corning Inc. said it took in tenders for $74,736,000 principal amount of notes in the cash tender offer for up to $75 million total of its $75 million of 8.875% debentures due Aug. 15, 2021, its $75 million of 8.875% debentures due March 15, 2016 and its $100 million of 6.75% debentures due Sept. 15, 2013. The tender offer expired at 11:59 p.m. ET on Nov. 26.

The notes are listed in order of priority acceptance level.

The company specifically took in tenders for $13,095,000, or 17.46%, of the notes due 2021 and $10,729,000, or 14.31%, of the notes due 2016, both amounts unchanged from the notes tendered by the early deadline, 5 p.m. ET on Nov. 8. The company also received tenders for $50,912,000, or 50.88%, of the notes due 2013, up from the $50,857,000 of those notes tendered by the early deadline.

As previously reported, pricing for the notes was set at 2 p.m. ET on Nov. 8 using the bid-side yield over a reference security plus a fixed spread. For each $1,000 principal amount, the prices are as follows:

• $1,448.37 for the 8.875% debentures due 2021, set using the 1.625% Treasury note due Aug. 15, 2022 plus 140 basis points with a reference yield of 1.592%;

• $1,254.31 bps for the 8.875% debentures due March 15, 2016, set using the 0.75% Treasury note due Oct. 31, 2017 plus 37.5 with a reference yield of 0.643%; and

• $1,052.58 for the 6.75% notes, set using the 0.75% Treasury note due Sept. 15, 2013 plus 0 bps with a reference yield of 0.17%.

The total purchase price includes an early tender premium of $30.00 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Nov. 8. Those who tendered their notes after the early deadline will receive the total payment less the early tender premium.

Holders also will receive accrued interest up to but excluding the settlement date of Nov. 27.

Tendered notes could not be withdrawn after the early tender date.

The tender offer is conditioned on completion of financing.

The company previously said that it would redeem two series of outstanding debentures on Nov. 26 at the make-whole redemption amount.

The company planned to redeem its $100 million of 5.9% debentures due March 15, 2014 using a reference Treasury yield plus a spread of 35 basis points and its $73,648,000 of 6.2% debentures due March 15, 2016 using a reference Treasury yield plus a spread of 40 bps.

J.P. Morgan Securities LLC (866 834-4666 or collect 212 834-4811) was the dealer manager. D.F. King & Co., Inc. (212 269-5550 or 800 967-4607) was information agent and tender agent.

The global glass and display technology company is based in Corning, N.Y. It launched the offer on Oct. 26.

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