Libbey Glass gets consents to release collateral securing 10% notes

By Toni Weeks

Toni Weeks, May 11 - Libbey Inc. said its wholly owned subsidiary, Libbey Glass Inc., received tenders and consents from holders of $356.1 million principal amount, or 98.91%, of its $360 million outstanding 10% senior secured notes due 2015 by the consent deadline, 5 p.m. ET on May 11.

After having received the needed consents, Libbey Glass executed a supplemental indenture to amend the notes, including a release of collateral, which will become operative when the tendered notes are purchased on May 18, according to a company press release.

Libbey Glass solicited consents to amend the notes to eliminate substantially all of the restrictive covenants, modify events of default and other provisions as well as release all of the collateral securing the obligations under the notes.

The cash tender offer to purchase up to $320 million of the notes began on May 1 and will continue to run until 11:59 p.m. ET on May 25.

Tendered notes may no longer be withdrawn.

Holders who tendered their notes by the consent date will receive the total payment of $1,070 per $1,000 principal amount of notes. The total purchase price includes a $30 early tender premium.

Those who tender notes after the consent date will receive the total purchase price less the early tender premium, or $1,040 per $1,000 of notes.

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

Final settlement for notes tendered after the consent date will occur shortly after the expiration date. The amount accepted will also be subject to proration and the tender cap.

The offer is conditioned upon the receipt of required consents to amend the indenture, completion of a new debt financing and amendments to the company's existing amended and restated credit agreement dated Feb. 8, 2010.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Barclays Capital Inc. (800 438-3242 or 212 528-7581) are the dealer managers and solicitation agents for the offer. Global Bondholder Services Corp. (866 952-2200 or 212 430-3774 for banks and brokers) is the information and tender agent.

Libbey is a Toledo, Ohio-based glassware manufacturer.

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