Longview Fibre ceases tender, consent solicitation for 10% notes

By Jennifer Chiou

New York, March 8 - Longview Fibre Co. announced the termination of its tender offer and consent solicitation for its $215 million of 10% senior subordinated notes due 2009.

The Longview, Wash., timberlands and paper company also said it postponed offerings of $150 million of senior unsecured notes due 2016 and 10 million of its shares.

The offerings, announced Feb. 27, were for Longview's refinancing related to its conversion to a real estate investment trust.

The company was soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

Holders that tendered with consents by the consent deadline would have received $1,052.50 for each $1,000 principal amount of notes, including a consent payment of $20.00 per $1,000 principal amount.

The consent deadline would have been 5 p.m. ET on March 10 and expiration for the tender had been slated for 9 a.m. ET on March 27.

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

Completion of the tender offer and consent solicitation would have been 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) were the dealer managers. Global Bondholder Services Corp. was the information agent (866 470-4300 or 212 430-3774).

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