Samsonite starts new tender for 10¾% notes

New York, May 25 - Samsonite Corp. said it has begun a new tender offer to purchase any and all of its 10¾% senior subordinated notes due 2008 and a consent solicitation to amend the indenture to eliminate certain covenants and certain provisions relating to events of default along with some other related provisions.

The Denver luggage maker currently has $308.261 million of the securities outstanding.

Samsonite said it will pay $1042.67 per $1,000 principal amount for notes tendered by the consent deadline of midnight ET on June 8. The amount includes a $20 consent payment.

For notes tendered after the consent deadline but before the expiration date of midnight ET on June 22, Samsonite will pay $1022.67 per $1,000 principal amount.

Samsonite will also pay accrued interest up to but not including the payment date.

Holders who tender will be deemed to have consented to the amendments.

The offer is subject to conditions including the receipt of at least $325 million from the sale of new notes.

Deutsche Bank Securities Inc. (call collect 212 250-4270) and Merrill Lynch & Co. (212 449-4914 or 888 385-2663) are dealer managers and solicitation agents. D.F. King & Co., Inc. (800 628-8532) is the information agent.

Samsonite on May 14 terminated its previous tender offer and consent solicitation, citing market conditions for canceling the tender offer and for its related decision to withdraw a planned $325 million offering of new bonds whose proceeds would have funded the tender offer.

As previously announced, Samsonite, a Denver-based luggage maker, said on April 30 that it had begun a tender offer and consent solicitation for any and all of its $322.861 million of outstanding 10¾% notes.

It set a consent deadline of midnight ET on May 13 and said the offer would expire at midnight ET on May 27, subject to possible extension.

The company said that holders tendering before the consent deadline would have received $1,042.33 per $1,000 principal amount including a $20 per $1,000 consent payment, while holders tendering after that deadline but before the expiration would have received consideration of $1,022.33 per $1,000 principal amount, but no consent payment. Samsonite also would have paid accrued interest up to but not including the date of payment on all tendered notes.

The company had said that tendering holders would have been deemed to have delivered consents to amending the note indentures to eliminate certain covenants and certain provisions relating to events of default and amending certain other related provisions.

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