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GSI Group seeks tenders, consents for 12% notes due 2013
By Laura Lutz
Des Moines, June 29 - The GSI Group, Inc. launched a cash tender offer and consent solicitation for all of its outstanding 12% senior notes due 2013.
The proposed amendments to the note indenture would eliminate substantially all of the restrictive covenants, eliminate some events of default, modify covenants relating to mergers and consolidations and modify some other provisions.
The tender offer will expire at midnight ET on Aug. 13. The consent deadline is 5 p.m. ET on July 13.
For each $1,000 principal amount of notes tendered by the consent deadline, the company will pay the sum of the present value on the initial payment date of $1,060 and the present value on the initial payment date of any interest that would accrue up to but excluding May 15, 2009, the earliest redemption date, minus accrued interest. The initial payment date is expected to be Aug. 1.
The present value of the notes will be determined based on the yield to maturity on the 5½% U.S. Treasury due May 15, 2009 plus 50 basis points.
That payout will include a consent payment of $20 per $1,000 principal amount of notes. Notes tendered after the consent deadline will receive the same amount, less the consent payment.
Holders will also receive accrued interest for the notes.
The tender offer is being conducted in connection with the planned merger of GSI's parent, GSI Holdings Corp., with an affiliate of Centerbridge Capital Partners, LP.
Settlement of the offer depends on conditions including the receipt of consents from holders of a majority of the notes, execution of the supplemental indentures, availability of funds and settlement of the merger.
UBS Securities LLC (888 722-9555 ext. 4210 or collect 203 719-4210) is the dealer manager. MacKenzie Partners Inc. (800 322-2885 or collect 212 929-5500) is the information agent.
Based in Assumption, Ill., GSI provides agricultural equipment and services.
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