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American Color Graphics solicits consents for non-interest bearing notes, 10% notes
By Jennifer Chiou
New York, March 7 - American Color Graphics, Inc. announced the start of a consent solicitation for its non-interest bearing senior second secured notes due March 15, 2008 and its $280 million of 10% senior second-secured notes due 2010.
The solicitation ends at 5 p.m. ET on March 12.
The Brentwood, Tenn., pre-media and print company is seeking consents to extend the maturity date of the 2008 notes until the later of June 15, 2008 and the date on which the interest payment due June 15 is due and payable without default or penalty, as well as to provide for the cancellation of the notes upon the merger of ACG Holdings, Inc.
On March 3, American Color Graphics said that it entered into an agreement with holders of 72.2% of the 2008 notes for consents. The company is seeking consents from holders of at least 97% of its 2008 notes.
The company is seeking consents to amend the 10% notes to provide that the rights and remedies of the trustee and the holders in the collateral of the notes shall be subordinate and subject to the rights and remedies of the holders of the 2008 notes with respect to the junior liens.
The proposed amendments will only become operative if amended 2008 notes are issued.
In connection with the solicitation, on March 3 the company entered into a credit facility with Special Situations Investing Group, Inc., as administrative agent, and certain other lenders to provide for term loans of up to $8 million.
On Nov. 16, holders of more than 92.5% of American Color Graphics's 10% notes agreed to defer the semiannual cash interest payment due on the notes on Dec. 15 to March 15.
ACG Holdings is the guarantor of the notes, and Bank of New York Trust Co., NA is the trustee.
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