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Wyndham offers to purchase all 9.875% notes, some 6%, 7.375% notes
By Angela McDaniels
Tacoma, Wash., Feb. 27 - Wyndham Worldwide Corp. began tender offers for its $250 million of 9.875% senior notes due 2014, $800 million of 6% senior notes due 2016 and $250 million of 7.375% senior notes due 2020, according to a company news release.
In the any and all tender offer, the company will purchase any and all of the 9.875% notes. In the maximum tender offer, it will purchase 6% notes first and, if the maximum tender amount has not been reached, 7.375% notes second.
The maximum tender amount is $500 million less the principal amount of 9.875% notes accepted for purchase in the any and all tender offer.
The any and all tender offer will expire at 5 p.m. ET on March 9. The maximum tender offer will expire at midnight ET on March 23.
The payment for the 9.875% notes will be determined by reference to the bid-side yield of the 0.25% Treasury due Feb. 28, 2014 plus a spread of 85 basis points.
Holders of 6% notes and 7.375% notes that are tendered by 5 p.m. ET on March 9, the early tender date, and accepted for purchase will receive the applicable total payment, which includes an early tender premium of $30 per $1,000 principal amount of notes.
The total payment for the 6% notes will be set using the 0.875% Treasury due Feb. 28, 2017 plus a spread of 165 bps. The total consideration for the 7.375% notes will be set using the 2% Treasury due Feb. 15, 2022 plus a spread of 190 bps.
The prices will be set at 2 p.m. ET on March 9.
The company will pay accrued interest up to but excluding the applicable settlement date.
The tender offers are subject to a financing condition. The company plans to fund the tender offers with the proceeds of an offering of senior debt securities.
The dealer mangers of the tender offers are J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) and Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527). The tender agent is D.F. King & Co., Inc. (800 967-4617).
Wyndham is a hospitality company based in Parsippany, N.J.
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