International Wire Group plans $110 million add-on bond deal, seeks consent of current holders

By Paul Deckelman

New York, March 23 - International Wire Group, Inc., unveiled plans on Wednesday to sell up to $110 million of new senior secured notes due 2015 in order to fund a one-time distribution to the company's stockholders and option holders - but it first needs the consent of its existing bondholders.

The Camden, N.Y.-based electrical wire manufacturer announced that it would seek consent to issue the new notes and make the equity distribution from the holders of the $116.5 million of 9¾% senior secured notes due 2015 that remain currently outstanding from the $140 million of the bonds which the company sold last April.

In its announcement, International Wire Group said it would seek the bondholders' consent to proposed amendments to the existing bonds' indenture that would allow those transactions to take place. It said that the planned new bonds would have terms substantially identical to the terms of the existing notes.

Proceeds from the sale would then be used to fund the distribution payments of up to $10 per share or option, for a total amount of $109.5 million.

International Wire Group said adoption of the proposed indenture amendments would require the consent of the holders of at least a majority of the outstanding principal amount of the 9¾% notes, voting as a single class. It is offering a cash consent payment of $30 per $1,000 principal amount to those holders who deliver valid consents by the solicitation's expiration deadline at 5 p.m. ET on April 1.

Only those holders of record of the current 9¾% notes as of the record date of 5 p.m. ET on Feb. 18 may deliver consents to the proposed amendments.

Wells Fargo Securities, LLC is acting as the solicitation agent for the consent solicitation.

The company announcement also indicated that it would have to amend its revolving credit facility as well to allow the distribution.

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