Champion Enterprises tenders for 7 5/8% notes

By Jennifer Chiou

New York, Oct. 29 - Champion Enterprises, Inc. announced the start of a cash tender offer for any and all of its $82.3 million of 7 5/8% senior notes due 2009.

The Auburn Hills, Mich., maker of factory-built housing is also soliciting consents to amend the indenture to eliminate or make less restrictive substantially all of the restrictive covenants.

The offer ends at midnight ET on Nov. 27.

For each $1,000 principal amount, Champion said it will determine the payout using the present value of the notes on the applicable payment date, minus accrued interest, discounted using the yield on the 3 7/8% Treasury due May 15, 2009 and a fixed spread of 50 basis points.

Those who tender by the consent deadline of 5 p.m. ET on Nov. 9 will receive a $30 consent payment, which is included in the payout.

Holders will also receive accrued interest.

The offer is contingent on sufficient proceeds from the issue of new notes for the offer, tenders from holders of a majority of notes and the execution of a supplemental indenture.

Credit Suisse Securities (USA) LLC (call collect 212 325-4951) is the dealer manager. D.F. King & Co., Inc. (999 887-0082 or call collect 212 269-5550) is the information agent and tender agent.

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