U.S. Can would pay down bank debt with proposed $125 million notes offering

By Sara Rosenberg

New York, June 26 - United States Can Co. plans to use proceeds from a proposed $125 million second priority senior secured notes offering to fund a partial paydown of outstanding borrowings under the senior secured bank facility and increase availability under the revolver for working capital and general corporate purposes.

The notes offering is subject to various conditions including obtaining consent from lenders to amend the senior secured credit facility, allowing for the offering and adjusting certain financial covenants.

Furthermore, the amendments may also permit the repurchase of a portion of the Lombard, Ill. steel container company's outstanding 12 3/8% senior subordinated notes.

Reliant Resources to pay down bank debt with $1.1 billion note sale

By Sara Rosenberg

New York, June 26 - Reliant Resources Inc. plans on using proceeds from its $1.1 billion senior secured notes offering to repay indebtedness under its existing credit facility.

This repayment will fully satisfy the only mandatory principal payment, a $500 million payment due in May 2006, required under the company's bank refinancing prior to maturity in 2007. Furthermore, the repayment will satisfy the soft amortization targets in 2004 and 2005, allowing the company to avoid associated fees and warrants, according to a news release.

The Houston energy company's note sale is expected to close on July 1.

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