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HD Supply receives noteholder consents to amend 5¾% notes due 2024
By Wendy Van Sickle
Columbus, Ohio, Aug. 25 – HD Supply, Inc. entered into a supplemental indenture amending its 5¾% senior notes due 2024 on Friday, following a successful consent solicitation, according to an 8-K filing with the Securities and Exchange Commission.
The consent solicitation ended at 5 p.m. ET on Aug. 24 and garnered support from holders of a majority of the notes.
The company offered a fee of $15.00 per $1,000 principal amount of notes to consenting holders to be paid only in the event of a successful consent solicitation. The fee was paid on Friday.
The amendments 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 will permanently increase to 7% from 5¾%.
Also, HD Supply will 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.
BofA Merrill Lynch (888 292-0070 or 980 388-4813) was the solicitation agent.
D.F. King & Co., Inc. (800 431-9633) was the information and tabulation agent.
HD Supply is an Atlanta-based industrial distributor.
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