Call-Net Enterprises bought back debt in quarter

Call-Net Enterprises Inc. said on Friday (Nov. 15) that in the quarter ended Sept. 30 it repurchased US$77.5 million of its debt at a cost of $29.7 million, generating a gain of $93.1 million. The purchase of the notes reduced the North York, Ontario-based telecommunications company's annual interest expense by approximately $13 million.

Borden Chemical bought back some bonds in fourth quarter

Borden Chemical Inc. said in its quarterly 10-Q filing with the Securities and Exchange Commission on Thursday (Nov. 14) that in the current (fourth) quarter of 2002, it repurchased $1.51 million of its outstanding publicly held bonds for $936,000.

The Columbus, Ohio-based maker of specialty and industrial chemicals said that a $574,000 gain on the extinguishment of the bonds will be recognized in the fourth quarter. Borden further said that it or its affiliates, including entities controlled by controlling shareholder Kohlberg Kravis Roberts & Co., may in the future purchase additional senior unsecured notes, depending on market conditions, in the open market or by other means.

Iron Mountain completes exchange offer for 9 1/8% notes

Iron Mountain Inc. said in its 10-Q quarterly filing with the Securities and Exchange Commission on Tuesday (Nov. 12) that it had completed an offer to exchange new 8 5/8% notes for its outstanding 9 1/8% notes on Nov. 8. The notes were swapped at an exchange ratio of 1.0237, resulting in the issuance of $45.9 million in face value of 8 5/8% notes and the retirement of $44.8 million of the 9 1/8% notes.

The Boston-based records and document storage company said the non-cash debt exchange will result in carryover basis and, therefore, no gain or loss on extinguishment of debt.

Jostens redeemed some 12¾% '10 notes in quarter

Jostens Inc. said in its 10-Q quarterly filing with the Securities and Exchange Commission on Tuesday (Nov. 12) that during the quarter ended Sept. 28, 2002, it voluntarily redeemed $7.5 million principal amount of its 12¾% senior subordinated notes due May 2010 for $8.5 million and other non-cash costs.

It recognized a loss of $1.8 million, consisting of a $0.8 million write-off of unamortized original issuance discount and deferred financing costs and a $1 million premium paid on redemption of the notes.

The Minneapolis-based maker of high school and college class rings and related jewelry products also said that during the nine months ended Sept. 28, it had made scheduled principal payments of $10.3 million and voluntarily prepaid an additional $5 million of principal on its senior secured credit facility.

AAF McQuay bought back senior notes in quarter

AAF McQuay Inc. said in its quarterly 10-Q filing with the Securities and Exchange Commission on Tuesday (Nov. 12) that in the first quarter of its 2003 fiscal year, the company repurchased a total of $21.9 million face value of its senior notes at a slight premium, resulting in a pre-tax loss after write off of associated debt issuance costs of approximately $0.3 million.

The Louisville Ky.-based maker of commercial air conditioning and air filtration products and systems said that it plans to hold these repurchased notes until their maturity in February 2003. The balance of senior notes held outside the company after the repurchase and included in the company's debt at Sept. 30, 2002 was $71.9 million.

AutoNation receives requisite consents on 9% '08 notes

AutoNation, Inc. said on Nov. 11 that it had received the requisite consents under its previously announced solicitation of consents to proposed indenture changes from the holders of its 9% senior notes due 2008, which expired as scheduled at 5 p.m. ET on Nov. 8 with no further extension. Accordingly, the company had therefore amended the terms of the indenture relating to the notes. The amendment increases by $400 million the company's capacity to make restricted payments under the terms of the indenture, including payments for the repurchase of AutoNation's common stock.

Banc of America Securities LLC (call 888 292-0070 toll-free or 704 388-4813 collect) was the lead solicitation agent, with J.P. Morgan Securities and Wachovia Securities serving as co-solicitation agent. Innisfree M&A Inc. (noteholders call toll-free at 888-750- 5834, banks and brokers call collect at 212 750-5833) served as Information Agent in connection with the consent solicitation. Wells Fargo Bank Minnesota, NA served as tabulation agent.

AS PREVIOUSLY ANNOUNCED, AutoNation, a Fort Lauderdale, Fla.-based retailer of new and used vehicles - the largest in the U.S. - said on Oct. 24 that it had begun soliciting consents to the proposed indenture changes from the holders of record (as of Oct. 23) of its $450 million of 9% notes. The company said that the amendment would increase by $400 million the company's capacity to make restricted payments under the terms of the indenture, including payments for the repurchase of AutoNation's common stock.

AutoNation said the consent solicitation would expire at 5 p.m. ET on Nov. 6 (it was subsequently extended). The solicitation would be subject to the receipt of consents from holders of at least a majority of the outstanding notes and other customary conditions.

On Nov. 7, AutoNation said that it had extended its consent solicitation to 5 p.m. ET on Nov. 8 from the original expiration deadline on Nov. 6. It also said the consent payment it was offering would be raised to $20 per $1,000 principal amount of notes tendered (the company did not publicly specify what the consent payment would be in its original announcement).

It said that holders who had already delivered their consents would NOT be required to deliver any further documentation in order to receive the increased consent payment.

Pac-West Telecom plans tender for 13 ½% '09 bonds

Pac-West Telecom Inc. said on Nov. 11 that it expected to announce a cash tender offer for its $106.5 million of remaining outstanding 13 ½% Series B senior notes due 2009 on Nov. 12. Pac-West also said that In connection with the invitation to the noteholders to offer their notes back to the company, it would also conduct a consent solicitation to amend the indenture relating to those notes. It said the proposed amendments would - among other things-substantially remove all of the restrictive covenants as well as certain events of default related to such covenants. The company said it would continue to review its debt obligations, including any senior notes not purchased under the tender offer, and consider various alternatives to continue to reduce such obligations.

Pac-West Telecom, a Stockton, Calif-based provider of integrated communications services to service providers and business customers in the western U.S., said that the tender offer would be part of the company's continuing effort o reduce the amount of debt in its capital structure. It said that retirement of the 13 ½% notes would reduce its annual interest expense and accelerate our attainment of free cash flow."

Pac-West Telecom, which also reported third-quarter earnings data on Nov. 11, further said that it had realized a gain on repurchase of bonds of $14.9 million in the quarter, relating to open market purchases undertaken to retire $22.8 million principal amount of the 13½% notes at a significant discount from face value. It said that those debt retirement transactions would result in annual interest payment reductions of approximately $3.1 million per year.

Sinclair Broadcast Group to redeem 9% '07 notes

Sinclair Broadcast Group Inc. said on Nov. 8 that it has notified the trustee for its $200 million of outstanding 9% senior subordinated notes due 2007 that it will redeem the issue in full on Dec. 9, paying the aggregate principal amount plus the associated call premium and all accrued interest.

Sinclair, a Baltimore-based television station group owner, said that it would fund the redemption using the proceeds of its recent add-on sale of $125 million 8% senior subordinated notes due 2012, plus available working capital (which will include a draw on Sinclair's bank credit facility).

PT Polytama Propindo begins exchange offer for 11¼% '07 notes

Polytama International Finance BV and PT Polytama Propindo said on Nov. 7 that that they would offer to exchange new debt for all of Polytama's outstanding 11¼% guaranteed secured notes due 2007.

The company is offering $0.5171 principal amount of its newly issued 8% guaranteed secured notes due 2017 and $0.1724 principal amount of its 6% guaranteed secured exchangeable notes due 2012 per $1 principal amount of the outstanding notes.

The exchange offer will expire at 5 p.m. ET on Dec. 9, subject to possible extension. It is subject to certain conditions as set forth in the official Offering Circular, including, among other things, receipt by the company of the Minimum Tender and other customary conditions.

The Bank of New York is the exchange agent for the transaction. Georgeson Shareholder Sevices is the information agent (in the U.S., banks and brokers should call 212 440-9800; all others call toll-free at 866 870-4322; outside the U.S. all holders should call 44 207 335-8739).

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