Lansing Trade gets early tenders for 79.2% of notes, enough to amend

By Susanna Moon

Chicago, Sept. 19 – Lansing Trade Group, LLC said investors had tendered $114.3 million, or 79.2%, of its $144.4 million of outstanding 9¼% senior notes due 2019 as of 5 p.m. ET on Sept. 16, the early tender date.

Lansing also received the needed majority of consents to amend the notes to eliminate most of the covenants and default provisions, which will become operative when the company accepts the notes for purchase, according to an issuer update.

As announced Sept. 13, the offer was pushed out until 11:59 p.m. on Sept. 30 from 12:01 a.m. on Sept. 14 and the total payment extended to 5 p.m. ET on Sept. 16 from 5 p.m. ET on Aug. 29, the original early deadline set when the tender offer opened on Aug. 16.

The company also boosted the total payment to holders who tendered by the early deadline to $1,000 per $1,000 principal amount of notes from $950 per $1,000 principal amount.

Those who tender after the early deadline will receive the total amount less the $30 early tender premium for a purchase price of $950 per $1,000 principal amount, up from $920 initially.

The company will also pay accrued interest to but excluding the settlement date.

The deadline to withdraw tendered notes was 5 p.m. ET on Aug. 29.

In connection with the tender, Lansing Trade is also soliciting holders’ consents to amend the note indenture.

Holders who tender notes under the offer must also give consents to the proposed amendments.

As previously announced, holders of about $76.55 million principal amount, or 53%, of the outstanding notes excluding those held by the company said they planned to tender their notes in the offer. Another $6.95 million of the notes have been tendered under the offer, Lansing Trade previously said.

Global Bondholder Services Corp. (212 430-3774 or 866 470-3700) is the information agent and tender agent. BofA Merrill Lynch (888 292-0070 or 980 388-3846) will act as dealer manager for the tender offer and solicitation agent for the consent solicitation.

Lansing Trade is an independent commodity merchandising and handling company based in Overland Park, Kan.

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