Rhodia gets consents, prices tender for 10½%, 8%, 7 5/8% notes

By Jennifer Chiou

New York, Oct. 17 - Rhodia announced pricing on the tender offer and consent solicitation for all its €117.65 million of 10½% senior notes due 2010, €700 million of 8% senior notes due 2010 and its $200 million of 7 5/8% senior notes due 2010, according to a 6-K filing with the Securities and Exchange Commission.

For each €1,000 or $1,000 principal amount, the company said it will pay €1,209.52 for the 10½% notes, €1,062.64 for the 8% notes and $1,049.08 for the 7 5/8% notes. The payouts include the €30.00 or $30.00 consent payment for those who tended by the early deadline on Oct. 13.

The consent deadline was 10 a.m. ET on Oct. 13 for bonds held through Euroclear and Clearstream and 5 p.m. ET on Oct. 13 for bonds held via DTC. The offer began on Oct. 2.

As of the consent deadline, the Courbevoie, France-based specialty chemicals company said it received tenders from holders of €116.241 million or 99% of its 10½% notes, €601.658 million or 86% of its 8% notes and $196.938 million or 98% of its 7 5/8% notes.

The company is soliciting consents to eliminate substantially all of the restrictive and reporting requirements of the notes.

For each €1,000 principal amount of 10½% notes, the company said its payout is based on the redemption price on the maturity date and the yield of the 5.25% German Bund due July 4, 2010 plus 50 basis points.

For the 8% and 7 5/8% notes, the price is based on the first call date and a reference security plus 50 bps. The reference security for the 8% notes is the 6% German Bund due July 4, 2007; for the 7 5/8% notes, it is the 3.625% U.S. Treasury due June 30, 2007.

Pricing was determined at 10 a.m. ET on Oct. 16.

Holders who tender their notes after the consent deadline will receive the same amount, less the consent payment.

The tender offer expires at 10 a.m. ET on Oct. 30. Settlement is expected on Oct. 31.

Credit Suisse, liability management group (London 4420 7883-6748 and New York 800 820-1653 or collect 212 538-0652) is the dealer manager; Bank of New York (44 207 964-6461) is the tender and depository agent; and DF King (800 859-8511 or collect 212 269-5550) is the information agent for the dollar-denominated notes.

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