K&F Industries calls part of 9¼% debentures

New York, Aug. 28 - K & F Industries, Inc. (B3) said that it will call for redemption $40 million of its $185 million of outstanding 9¼% senior subordinated debentures due 2007.

The new York-based maker of aircraft wheels, fuel tanks and brake systems said the debentures will be redeemed on Oct. 15, at a price of 103.083% of the principal amount.

Joy Global redeems $12.7 million IRBs

New York, Aug. 28 - Joy Global Inc. said it redeemed a total of $12.7 million principal amount of its industrial revenue bonds during the third quarter.

The Milwaukee mining machinery company said in a filing with the Securities and Exchange Commission that it retired $8.3 million of its 8.5% industrial revenue bonds and $4.3 million of its 8.75% industrial revenue bonds.

Delta Air Lines extends 6.65% and 7.70% note exchange offer

New York, Aug. 28 - Delta Air Lines (B3/BB-) said it has extended its previously announced offer to exchange new debt and cash for its outstanding 6.65% series C medium-term notes due 2004, and new debt for its 7.70% senior notes due 2005.

The offer, which had been scheduled to expire at 5 p.m. ET on Aug. 27, will now expire at 5 p.m. ET on Sept. 4, subject to possible further extension. All other terms and conditions of the offer are unchanged.

As of Aug. 27, $62.571 million principal amount of the 6.65% notes had been tendered and not withdrawn in the exchange offer, up from the $24.846 million which had been tendered as of Aug. 12, the last previously announced noteholder participation figure. Delta said $161.613 million principal amount of the 7.70% notes had been tendered and not withdrawn, up from $89.77 million as of Aug. 12.

As previously announced, Delta, an Atlanta-based airline company, outlined plans on July 25 for an exchange offer for its $300 million outstanding principal amount of 6.65% notes and its $500 million outstanding principal amount of 7.70% notes.

Delta initially set an early tender date of 5 p.m. ET on Aug. 8, and said the exchange offer would expire at 5 p.m. ET on Aug. 25; the latter deadline was subsequently extended.

It initially said that it would exchange $545 principal amount of its new 10% senior notes due 2008 per $1,000 principal amount of the existing 6.65% notes tendered by the early tender deadline, plus $500 cash, and would offer $525 principal amount of new notes plus $500 cash per $1,000 principal amount of existing notes tendered after the early tender deadline (the consideration was subsequently amended).

Delta also initially said it would offer $1,040 principal amount of the new notes per $1,000 principal amount of the existing 7.70% notes tendered by the early tender deadline, and would offer $1,020 principal amount of the new notes per $1,000 principal amount of notes tendered after the early tender deadline (the consideration was subsequently amended).

Delta originally said that the exchange offer would be subject to customary conditions, including the receipt by the company of valid and unwithdrawn tenders of the existing notes that would result in issuance of at least $200 million in aggregate principal amount of the new notes (The company announced on Aug. 25 that this minimum tender condition had been waived).

The company initially said that tenders of outstanding existing notes could be withdrawn at any time on or prior to the withdrawal deadline of 5 p.m. ET on Aug. 8, the early tender deadline; the withdrawal deadline was subsequently extended.

On Aug, 13, Delta amended the terms of its exchange offer, changing the consideration it is offering the holders of the 6.65% notes to $409.50 principal amount of new 10% senior notes due 2008 and $650 in cash per $1,000 principal amount of existing notes tendered, and changing the consideration being offered for the 7.70% notes to $1,120 in principal amount of new notes per $1,000 principal amount of existing notes. It also extended the withdrawal deadline to 5 p.m. ET on Aug. 20 and expiration deadline of the offer to 5 p.m. ET on Aug. 27, both subject to possible further extension. The airline said that all other previously announced terms and conditions of the offer were unchanged.

Varsity Brands extends consent deadline for 10½% notes

New York, Aug. 28 - Varsity Brands, Inc. (B2/B-) said it was extending the consent deadline under its previously announced tender offer for its 10½% senior notes due 2007, to 5 p.m. ET on Aug. 28, subject to possible further extension, from the previous deadline at 5 p.m. ET on Aug. 27.

All other original terms and conditions of the tender offer and consent solicitation are unchanged. Holders who had previously tendered their securities under the offer do not need to take any further action as a result of this extension.

As previously announced, Varsity Brands, a Memphis, Tenn.-based cheerleading products company, said on Aug. 13 that was starting a cash tender offer for all of its outstanding 10½% notes (Standard & Poor's said there were $115 million of the notes currently outstanding).

The company initially set a consent deadline of 5 p.m. ET on Aug. 26 and an expiration date of 5 p.m. ET on Sept. 12 (the deadlines were subsequently extended; the offer will now expire at 12 midnight ET on Sept. 12.

It offered to pay $1,037.50 per $1,000 principal amount of notes tendered, which would include a consent fee of 0.25% of the principal amount for holders who tender by the consent deadline.

Varsity Brands also said it was seeking consents to certain proposed amendments to the notes' indenture.

The company said the tender offer was being carried out in conjunction with the planned leveraged buyout of Varsity by a wholly-owned subsidiary of an affiliate of Leonard Green & Partners, LP, together with members of the company's senior management. Completion of the tender offer is conditioned upon, among other things, the consummation of the merger between Varsity Brands and VB Merger Corp., which was formed by Leonard Green & Partners for the purpose of acquiring majority ownership of Varsity.

Jefferies & Company, Inc. (800 933-6656) is dealer manager and information agent for the tender offer. The depositary is HSBC Bank USA.

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