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Georgia Gulf amends 7 1/8% notes following successful consent solicitation
By Susanna Moon
Chicago, Oct. 1 - Georgia Gulf Corp. entered into a fourth supplemental indenture after a settlement with holders of its 7 1/8% senior notes due 2013, according to an 8-K filed with the Securities and Exchange Commission.
Amendments were approved by the holders of a majority of the 7 1/8% notes through a consent solicitation.
The amendments permit the company to engage in a deal that could potentially result in a successor with greater debt than was allowed under the indenture.
As previously reported, Georgia Gulf entered into a settlement in which noteholders agreed to withdraw a notice of default. The company and the noteholders also agreed to file for dismissal of a related lawsuit.
Georgia Gulf will pay $1.4 million of the noteholders' legal fees under the settlement.
The company said it will pay a $1.5 million fee to the consenting noteholders.
Payment of the consent fee and the indenture amendment is also subject to approval of the lenders under the company's bank credit agreement.
As reported on June 9, the company received a notice from holders of at least 25% of the notes that claims that borrowings under Georgia Gulf's senior credit facility resulted in the incurrence of debt obligations in excess of the amount allowed under the notes indenture.
Atlanta-based Georgia Gulf manufactures chlorovinyls, aromatics and vinyl-based building and home improvement products.
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