Keystone starts exchange for restructuring

New York, Feb. 11 - Keystone Consolidated Industries, Inc. said it had begun an exchange offer to implement its previously announced restructuring.

The Dallas, Texas fencing and construction products company is offering to exchange its $100 million outstanding 9 5/8% senior secured notes for either a discounted cash amount and common stock (subject to an aggregate limit for holders choosing this option) or new preferred equity and subordinated debt securities or subordinated unsecured debt securities.

Holders of 92% of the principal amount of the 9 5/8% notes have already committed to support the plan for an out-of-court restructuring, Keystone said.

The exchange expires on March 12, 2002 and is subject to a successful replacement ore renewal of the company's revolving credit facility, new term financing, reaching agreement on a proposed subordinated loan from the State of Illinois and satisfactory restructuring of the company's other obligations.

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