American Achievement to solicit consents to amend 12¾% PIK notes

By Jennifer Chiou

New York, May 16 - American Achievement Group Holding Corp. entered into arrangements with holders of a majority of its 12¾% senior pay-in-kind notes due 2012 to launch a consent solicitation for the notes, according to an 8-K report filed with the Securities and Exchange Commission on Friday.

The company said that it is looking to amend the note indenture to require it to redeem the notes at 101% upon completion of an agreement under which shareholders will sell all of their American Achievement shares to Herff Jones Inc.

Amendments also include the removal of substantially all of the restrictive and reporting covenants under the indenture.

The company noted that a majority of noteholders has already consented to the proposed amendments.

American Achievement is a scholastic products company based in Austin, Texas.

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