Longview Fibre tenders for 10% notes

New York, Feb. 27 - Longview Fibre Co. said it has begun a tender offer for its $215 million of 10% senior subordinated notes due 2009.

The Longview, Wash., timberlands and paper company is also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

Holders that tender with consents by the consent deadline will receive $1,052.50 for each $1,000 principal amount of notes, including a consent payment of $20 per $1,000 principal amount.

Those that tender after the consent deadline but before the expiration will receive $1,032.50 for each $1,000 principal amount.

The consent deadline is 5 p.m. ET on March 10. Expiration for the tender is 9 a.m. ET on March 27.

Longview will also pay accrued interest up to but excluding the payment date.

Holders are not permitted to tender without delivering consents.

The tender is part of the refinancing begun in December 2005 and is expected to be funded with proceeds from new debt and equity financings.

Completion of the tender offer and consent solicitation is subject to conditions, including receipt of tenders and consents for a majority of the outstanding notes and completion of one or more new equity or debt offerings with gross proceeds to the company of at least $330 million.

Goldman, Sachs & Co. (800 828-3182) and Banc of America Securities LLC (888 292-0070) are dealer managers. Global Bondholder Services Corp. is information agent (866 470-4300 or 212 430-3774).

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