Heafner extends tender, switches to dutch auction

New York, March 11 - Heafner Tire Group, Inc. extended its tender offer for its 10% senior notes due 2008 and switched to a dutch auction process to set the price at which it will buy back the notes. Overall, the changes increase the price Heafner is offering and reduce the amount of notes it will buy.

The Huntersville, N.C. tire supplier is now offering to purchase up to $126 million of the notes at a price of not less than $450 and not more than $535 per $1,000 principal amount. The minimum Heafner will buy is $105 million.

The tender offer and related consent solicitation will now expire at 5.00 p.m. ET on March 25, moved back from March 11. Holders who have already must resubmit their tenders and consents.

Heafner has $150 million of the 10% notes outstanding and was previously offering a preset amount of $375 per $1,000 principal in the tender.

In parallel with the tender offer is a consent solicitation to amend the debt incurrence and negative pledge covenants in the note indenture.

The dealer manager for the offer is Credit Suisse First Boston.

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