American Achievement solicits consents for 12¾% notes

By Jennifer Chiou

New York, July 11 - American Achievement Corp. announced that it is soliciting consents to amend the indenture of its 12¾% senior pay-in-kind notes due 2012.

The solicitation will end at 5 p.m. ET on Aug. 8.

The company noted that it has entered into agreements under which holders of a majority of the notes have agreed to deliver consents.

Under a previously announced stock purchase agreement among Herff Jones Inc., American Achievement and its stockholders, the holders have agreed to sell all of their shares to Herff.

Amendments to the note indenture consist of:

• A requirement that upon consummation of the stock purchase agreement, American Achievement will redeem all of its outstanding notes at a redemption price in cash equal to 101% plus accrued interest, if any, to but not including the completion date; and

• The removal of substantially all of the restrictive and reporting covenants, as well as certain events of default and related provisions, including without limitation, the covenant that would otherwise require the company to make an offer to purchase the notes upon completion of the transaction.

American Achievement is an Austin, Texas-based provider of products used to mark special occasions, such as yearbooks and class rings.

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