Commonwealth Brands receives consents to amend 9¾%, 10 5/8% notes

New York, Dec. 8 - Commonwealth Brands, Inc. said it has received the necessary consents to amend its $150 million of 9¾% senior secured notes due 2008 and $225 million of 10 5/8% senior subordinated secured notes due 2008.

The company added that it plans to enter into a supplemental indenture - although that will only become effective when it buys the notes.

Under the changes to the indenture, Commonwealth Brands will eliminate substantially all of the restrictive covenants and events of default as well as release the collateral for the notes.

Commonwealth Brands' announcement follows passing of the consent deadline at 5 p.m. ET on Dec. 7.

The consent solicitation is part of a tender offer for the notes announced on Nov. 23.

Including a $20.00 per $1,000 principal amount of notes consent payment, the company said it will pay $1,142.94 for the 10 5/8% notes and $1,107.65 for the 9¾% notes.

Those who tendered their notes before the consent deadline will receive the consent payment.

The offers, which expire at midnight ET on Dec. 21, unless extended, are conditioned upon sufficient funds from a new credit facility, tenders from a majority of noteholders and the execution of supplemental indentures.

Deutsche Bank Securities Inc. (212 250-4270) is the dealer manager and solicitation agent. MacKenzie Partners, Inc. is the information agent (call collect 212 929-5500 or 800 322-2885).

Commonwealth Brands is a Bowling Green, Ky., cigarette manufacturer.

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