Da-Lite launches cash tender, change-of-control offers for 12½% notes

By Susanna Moon

Chicago, April 18 - Da-Lite Screen Co., Inc. said it began a cash tender offer and consent solicitation for its outstanding 12½% senior notes due 2015 as well as a separate change-of-control offer for the notes.

Under the tender offer, the company will pay $1,186.25 for each $1,000 principal amount of notes tendered before 5 p.m. ET on April 29, the consent date. The total payment includes a consent fee of $30.00 per $1,000 principal amount.

Holders who tender their notes after the consent expiration but before the offer deadline at 8 a.m. ET on May 16 will receive $1,156.25 per $1,000 principal amount.

The company is soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and some events of default.

As of April 18, the company had received indications from the beneficial holders of about 45% of the notes that they intend to tender their notes and deliver consents to the proposed amendments.

The company also began a change-of-control offer that will run until 8 a.m. ET on May 16.

Da-Lite was acquired by DLI Acquisition Corp. on April 15, which constituted a change of control under the note terms and requires that the company offer to purchase the notes at 101 plus accrued interest.

In addition to those offers, the company said it began a free cash flow offer to purchase up to $5.72 million principal amount of the notes at 103, and the offer is scheduled to expire on April 29.

Merrill Lynch (debt advisory services, 888 292-0070 or collect 980 388-9217) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 431-9643 or, for banks and brokers, 212 269-5550) is the depositary and information agent.

Da-Lite is a Warsaw, Ind.-based manufacturer and marketer of projection screens and presentation products.

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