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Giant Industries starts tender for 9% notes, to redeem some 11% notes
New York, April 13 - Giant Industries, Inc. said it has begun a cash tender offer and consent solicitation for any and all of its $150 million principal amount of 9% senior subordinated notes due 2007.
Holders who tender by the consent date of 5 p.m. ET on April 26 will receive $1,033.75 per $1,000 principal amount, which includes a consent payment of $30.00 per $1,000 principal amount.
Holders who tender after the consent date but before the expiration of midnight ET on May 10 will receive $1,003.75 per $1,000 principal amount.
In both cases the company will pay accrued interest up to but not including the payment date.
The consent solicitation is to amend the note indenture to eliminate substantially all the restrictive covenants.
Holders cannot tender without delivering consents or deliver consents without tendering.
The Scottsdale, Ariz. petroleum products refiner and marketer said the offer is subject to various conditions including tenders of a majority of the principal amount of the notes and the company issuing at least $150 million of new senior subordinated notes due 2014.
Banc of America Securities LLC is the dealer manager and solicitation agent (contact High Yield Special Products at 888 292-0070 or collect at 704 388-9217). Global Bondholder Services Corp. is the information agent (contact Corporate Actions at 866 470-3500, banks and brokers call collect 212 430-3774).
The company also said that it plans to redeem part of its outstanding 11% senior subordinated notes due 2012 through exercise of the equity clawback provision. Funding will come from a sale of three million shares of common stock.
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