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Liberty Mutual extends early tender date, consent date for 7.5% notes
By Angela McDaniels
Tacoma, Wash., April 4 - Liberty Mutual Group Inc. extended the early tender date and the consent expiration date for its $439.55 million of 7.5% senior notes due 2036 to 5 p.m. ET on April 6 from April 1, according to a company news release.
A tender offer and a consent solicitation for the notes began on March 21. The tender offer will expire at midnight ET on April 15.
The company is soliciting consents to terminate the replacement capital covenant that it executed in favor of the 7.5% noteholders in connection with its 10.75% series C junior subordinated notes. Consents are needed from the holders of a majority of the 7.5% notes in order to terminate the covenant.
Holders may tender their 7.5% notes or separately deliver their consents without tendering their notes. Holders who tender their notes by the consent solicitation expiration will be deemed to have delivered consents.
The consent fee is $20 for each $1,000 principal amount of notes.
Holders who tender will receive $1,070 for each $1,000 principal amount of notes. This amount includes a premium of $50 for each note tendered by the early tender time. No consent fee will be paid for tendered notes.
The company will also pay accrued interest up to but excluding the settlement date for tendered notes.
As of 5 p.m. ET on April 1, holders had delivered tenders for 82.89% of the notes. In the separate consent solicitation, consents had been delivered for an additional 16.39% of the notes. The consents received are enough to terminate the replacement capital covenant.
The payment of the purchase price and the consent fee are conditioned the satisfaction of a financing condition.
Merrill Lynch (888 292-0070 or 980 683-3215) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) are the dealer managers and solicitation agents. Global Bondholder Services Corp. (866 873-5600) is the depositary and information agent.
Liberty Mutual is an insurance company based in Boston.
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