Wyndham accepts $442.88 million of 6% notes, no 7.375% notes

By Angela McDaniels

Tacoma, Wash., March 26 - Wyndham Worldwide Corp. accepted $442,881,000 principal amount of its $800 million of 6% senior notes due 2016 and none of its $250 million of 7.375% senior notes due 2020 in its maximum tender offer, according to a company news release.

As previously reported, the company began an any and all tender offer for its $250 million of 9.875% senior notes due 2014 and a maximum tender offer for the 6% notes and 7.375% notes on Feb. 27.

The any and all tender offer expired at 5 p.m. ET on March 9. The maximum tender offer expired at midnight ET on March 23.

In the any and all offer, holders tendered $207,118,000 principal amount, or 82.85%, of the 9.875% notes. All of the tendered notes were accepted for purchase.

In the maximum tender offer, the company offered to repurchase 6% notes first and, if the maximum tender amount had not been reached, 7.375% notes second.

The maximum tender amount is $650 million - increased from $500 million on March 9 - less the principal amount of 9.875% notes accepted for purchase in the any and all offer.

Holders tendered $446,672,000 principal amount, or 55.83%, of 6% notes and $143,005,000 principal amount, or 57.2%, of 7.375% notes in the maximum tender offer.

For each $1,000 principal amount, the purchase price is $1,183.04 for the 9.875% notes and $1,150.69 for the 6% notes. It would have been $1,230.91 for the 7.375% notes.

These amounts include an early tender premium of $30.00 per $1,000 principal amount for 6% notes and 7.375% notes tendered by 5 p.m. ET on March 9, the early tender date.

Holders will also receive accrued interest up to but excluding the applicable settlement date.

Pricing was set at 2 p.m. ET on March 9. The payments were set by reference to the bid-side yield of the 0.25% Treasury due Feb. 28, 2014 plus a spread of 85 basis points for the 9.875% notes, the 0.875% Treasury due Feb. 28, 2017 plus 165 bps for the 6% notes and the 2% Treasury due Feb. 15, 2022 plus 190 bps for the 7.375% notes.

The tender offers were subject to a financing condition.

The dealer mangers were 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 was D.F. King & Co., Inc. (800 967-4617).

Wyndham is a hospitality company based in Parsippany, N.J.

© 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.