Tenders

AMERICAN RESTAURANT GROUP, INC. late Monday said it had begun an exchange offer for all its its outstanding 11½% series B senior secured notes due 2003 held by qualified institutional buyers. The Los Altos, Calif. restaurant company said it is offering $1,063.16 principal amount of its new 11½% series C senior secured notes due 2006 for each $1,000 principal of the old notes, with the amount of new notes rounded to the nearest $1,000. Holders will also receive accrued and unpaid interest in cash up to but not including the date of exchange. American Restaurant said the purpose of the exchange offer is to extend the maturity of the its long-term debt. The exchange offer expires at midnight ET on Tuesday, Oct. 30, 2001, unless extended or terminated. The exchange is conditional on the company successfully obtaining financing to complete the exchange offer and certain related transactions, successfully obtaining the requisite consent from holders of the notes to certain amendments to the note indenture, at least 75% in aggregate principal amount of the notes outstanding being tendered, and successfully obtaining the consent of the holders of a majority of the company's series B preferred stock to certain amendments to the stock. The company is also offering $30 million principal of the new notes in a Rule 144A offering, with proceeds to refinance its existing debt, to pay the accrued and unpaid interest with respect on the notes being exchanged and for general corporate purposes.

SWEETHEART CUP CO. said it is terminating its tender offer to purchase the 9½% senior subordinated notes due 2007 of The Fonda Group, Inc. and the consent solicitation to eliminate or amend covenants in the note indenture. Sweetheart said some conditions of the tender offer have not been met.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.