K2 prices tender for 7 3/8% notes, receives consents

New York, July 31 - K2 Inc. announced pricing in its cash tender offer to purchase its outstanding 7 3/8% senior notes due 2014.

The company will pay $1,073.56 per $1,000 principal amount, which includes a $30.00 consent payment that will only be made to those who tendered by the consent deadline of 5 p.m. ET on July 31.

To calculate the price, K2 used a reference yield of 4.628%.

K2 also announced that it received the necessary consents to amend the notes.

By the deadline, holders had tendered $198.96 million or 99.5% of the amount outstanding.

K2 has entered into a supplemental indenture that will become effective when it buys the notes.

The proposed amendments will eliminate substantially all of the restrictive covenants and some events of default, delete the covenant relating to the merger and consolidation of K2 and amend certain terms of the defeasance and discharge provisions.

Holders may not tender without delivering consents.

The tender offer will expire at 11:59 p.m. ET on Aug. 14.

The company determined the payout at 2 p.m. ET on July 31 based on the bid-side price of the 3 5/8% U.S. Treasury note due July 15, 2009 plus 50 basis points, minus accrued interest up to but excluding the payment date.

The tender consideration will include a consent payment of $30 per $1,000 principal amount for notes tendered by the consent deadline.

Tendering noteholders will also receive accrued interest up to but excluding the payment date, which is expected to be Aug. 8 for notes tendered by the consent deadline and Aug. 15 for all remaining tendered notes.

As announced on July 18, the tender offer and consent solicitation are being made in connection with the planned acquisition of K2 by Jarden Corp. and are subject to the receipt of the needed consents and to the closing of the acquisition.

Lehman Brothers Inc. (800 438-3242 or 212 528-7581) is the dealer manager and solicitation agent, and Global Bondholder Services Corp. (212 430-3774 or 866 470-4200) is the information agent.

K2 is based in Carlsbad, Calif., and manufactures products used in team and individual sports.

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