Exide gets needed consents, early tenders for 95.2% of 10½% notes

By Jennifer Chiou

New York, Jan. 25 - Exide Technologies said it obtained the necessary consents to amend its 10½% senior secured notes due 2013 after recording early tenders for $276,069,000, or 95.2%, of the notes.

As announced on Jan. 10, the proposed amendments to the indenture governing the notes will eliminate substantially all of the restrictive covenants and some events of default and related provisions, release all collateral securing the notes and eliminate provisions relating to collateral.

Following receipt of consents, Exide said it will enter into a supplemental indenture.

Under the terms of the offer, noteholders cannot deliver consents without tendering their notes. Those who tender their notes will be deemed to have consented to the amendments.

The company will pay $1,014 for each $1,000 principal amount of notes. This payment includes a consent payment of $14.00 for each note tendered by 5 p.m. ET on Jan. 24, the consent deadline.

Noteholders will also receive accrued interest up to but excluding the payment date.

The offer will expire at midnight ET on Feb. 7.

The tender and the consent solicitation were subject to the receipt of early consents for least 75% of the outstanding notes not owned by the company or its affiliates and the receipt of enough financing to repurchase the notes.

The company also said it plans to redeem on March 15 any notes that remain outstanding after the completion of the tender offer. The redemption price will be par plus accrued interest.

Deutsche Bank Securities Inc. (212 250-6429) is the dealer manager and solicitation agent. The information agent is D.F. King & Co., Inc. (212 269-5550 for banks and brokers, noteholders call 800 207-3158).

Milton, Ga.-based Exide Technologies makes and recycles lead-acid batteries.

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