GenCorp looking to refinance 5¾% convertibles

New York, Oct. 20 - GenCorp Inc. said it has begun soliciting consents from holders of its high-yield bonds so that it is can refinance its outstanding 5¾% convertible subordinated notes due 2007.

The change to the indenture for the 9½% senior subordinated notes due 2013 would allow GenCorp to refinance the convertibles with new subordinated debt having a final maturity or redemption date later than the final maturity or redemption date of the 5¾% notes.

It would also give the company up to 10 business days to apply the proceeds of refinancing debt toward the redemption or repurchase of outstanding debt.

The consent solicitation is scheduled to expire at 5 p.m. ET on Oct. 29, subject to possible extension.

GenCorp, a technology-based manufacturer based in Sacramento, Calif., said that if it gets valid consents from holders of a majority of the principal amount of the outstanding 9½% notes by the consent deadline, it will pay those holders a consent fee of $1.25 per $1,000 principal amount of notes for which a consent is validly delivered and not later revoked. Holders may revoke their consents until the proposed amendment becomes effective.

Wachovia Securities is the solicitation agent for the consent solicitation (contact the Liability Management Group at 866 309-6316 or call collect at 704 715-8341). The information and tabulation agent for the offer is Global Bondholder Services Corp. (call 866 873-5600; banks and brokers call 212 430-3774).

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