Liberty Mutual amends fee, deadline of consent bid for 7.5% notes, extends 10.75% notes tender

By Marisa Wong

Madison, Wis., Feb. 2 - Liberty Mutual Group Inc. said it further modified the terms of the consent solicitation for its 7.5% senior notes due 2036 and the cash tender offer for its 10.75% series C junior subordinated notes.

The latest changes are to the consent fee and deadline for the consent solicitation and the expiration date for the cash tender offer.

The consent solicitation and tender offer began on Jan. 14. The company previously announced extensions to the consent solicitation and tender offer on Jan. 25, Jan. 27 and Feb. 1.

The consent fee has been restated to mean a cash payment per $1,000 of notes equal to the product of $20 multiplied by a fraction, the numerator of which is the principal amount of 7.5% notes outstanding at the expiration time and the denominator of which is the total principal amount of notes for which the company receives consents.

Previously, the consent fee was going to be $5 per $1,000 of notes.

The company is also extending the consent solicitation deadline to 5 p.m. ET on Feb. 3 from 5 p.m. ET on Feb. 1. Holders who deliver their consents before the new consent expiration time will be eligible to receive the amended consent fee.

As of 5 p.m. ET on Feb. 1, Liberty Mutual had received consents from holders of $128.99 million of the 7.5% notes.

With respect to the tender offer, the company is again extending the expiration date, this time to midnight ET on Feb. 4 from midnight ET on Feb. 2.

As of the old expiration time, holders had tendered $212,135,000 of the 10.75% notes.

The company is offering $1,272.50 for each $1,000 principal amount of 10.75% notes plus accrued interest.

Bank of America Merrill Lynch (888 292-0070 or 980 388-8217) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) are the dealer managers and solicitation agents for the offers. Global Bondholder Services Corp. (866 795-2200) is the information agent.

Boston-based Liberty Mutual is a property and casualty insurer.

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