Grohe begins tender offer for up to €400 million floaters due 2014

By Angela McDaniels

Tacoma, Wash., Feb. 28 - Grohe Holding GmbH is offering to purchase up to €400 million principal amount of its €800 million senior secured floating-rate notes due Jan. 15, 2014, according to a company news release.

The company is also soliciting consents for proposed amendments to the indenture that would allow it to incur debt under a refinancing and incur liens to secure that debt. Noteholders who tender will be deemed to have consented.

Holders will receive €1,003.50 per €1,000 principal amount of notes, which includes a €2.50 consent fee. The company will also pay accrued interest up to but excluding the payment date.

In the event of proration, holders will receive the consent fee for the full principal amount of notes tendered, not just the notes accepted for purchase.

Holders must tender a minimum of €50,000 principal amount of notes in order to participate.

The tender offer will end at 11 a.m. ET on March 7.

Consents are needed from the holders of a majority of the notes in order to make the amendments, and the tender offer is conditioned on the successful consummation of the consent solicitation.

The company plans to issue at least €400 million of new senior secured notes and to use the proceeds to fund the tender offer.

The dealer managers are Credit Suisse Securities (Europe) Ltd. (+44 207 883 8763 or liability.management@credit-suisse.com), Deutsche Bank AG, London Branch (+44 207 545 8011 or liability.management@db.com) and Morgan Stanley & Co. International plc (+44 207 677 5040 or liabilitymanagementeurope@morganstanley.com).

Deutsche Bank is also the tender agent (+44 207 547 5000 or xchange.offer@db.com).

Grohe makes plumbing fixtures and is based in Dusseldorf, Germany.

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