HD Supply launches consent solicitation to amend 5¾% notes due 2024

By Wendy Van Sickle

Columbus, Ohio, Aug. 17 – HD Supply, Inc. began a consent solicitation to amend its 5¾% senior notes due 2024, according to a press release on Thursday.

The proposed amendments would permit the company to make additional restricted payments up to $500 million plus an additional amount that does not cause the company’s pro forma leverage ratio to exceed three times.

Additionally, beginning on April 15, 2019, the first scheduled call date, the interest rate on any notes that remain outstanding would permanently increase to 7% from 5¾%.

Also, HD Supply would not be required to potentially apply net proceeds from the recently completed sale of the company’s Waterworks business unit to make a par offer for the notes pursuant to the “sale of assets” covenant of the indenture.

If the consent bid is successful, holders will receive a fee of $15.00 per $1,000 principal amount of notes for which consents are delivered by the deadline, 5 p.m. ET on Aug. 24.

For passage, the amendments must be approved by holders of at least a majority of the principal amount of outstanding notes.

BofA Merrill Lynch (888 292-0070 or 980 388-4813) is the solicitation agent.

D.F. King & Co., Inc. (800 431-9633) is the information and tabulation agent.

HD Supply is an Atlanta-based industrial distributor.

© 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.