RSI Home receives consents to amend 6˝% notes for merger

New York, Dec. 15 – RSI Home Products, Inc. received approval to amend its 6˝% senior secured second-lien notes due 2023 in connection with is planned merger with American Woodmark Corp.

As of the expiration of the solicitation to make the changes at 5 p.m. ET on Dec. 15, the company had received consents from holders of a majority of the notes, according to a news release.

In return for consents, RSI is offering to pay a cash payment of $2.50 for each $1,000 principal amount if it collects the needed majority of consents.

As announced on Dec. 6, RSI was soliciting consents to amend the definition of change of control in the notes indenture to provide an exception for the acquisition of the company by American Woodmark.

The solicitation is contingent on closing of the merger, or “reasonable expectation” that the merger will close.

The proposed amendments will become operative when RSI pays the consent fees, which is expected to occur just before the merger closes.

The solicitation agent is Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760). The information and tabulation agent is D.F. King & Co., Inc. (800 714-3311, 212 269-5550 or rsihome@dfking.com).

Wells Fargo Bank, NA is the trustee and collateral agent.

RSI Home Products is an Anaheim, Calif.-based manufacturer of kitchen, bath and home storage cabinets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.