LNR ups pricing in tenders for 7¼%, 7 5/8% notes

New York, Jan. 11 - LNR Property Corp. said it changed the pricing in its cash tender offer and consent solicitation for any and all of its 7 5/8% senior subordinated notes due 2013 and 7¼% senior subordinated notes due 2013, effectively increasing the amount on offer.

The discount rate used will now be based on a 50 basis points spread over the reference security instead of a 100 basis points spread.

LNR announced the tender on Dec. 31. The Miami Beach, Fla., company said that a tender will constitute a consent to amend the note indenture to eliminate certain events of default and substantially all the covenants in the indenture, other than the covenant to pay principal and interest and a covenant requiring LNR to offer to repurchase notes for 101% of their principal amount during a period of 30 to 45 days following notice that a change in control has occurred.

LNR is offering to pay the present value of the notes' redemption price on their first call date plus all scheduled interest payments from the date LNR repurchases the notes up to but not including the redemption date. The discount rate was originally 100 basis points over the yield to maturity on the U.S. Treasury note with a maturity date closest to the first call date, fixed at 2 p.m. ET on the date two trading days before the consent deadline, minus $30.00 per $1,000 principal amount, plus accrued interest up to but excluding the repurchase date. The discount rate has now been revised.

LNR will pay a consent fee of $30.00 per $1,000 principal amount for notes tendered by the consent deadline of 5 p.m. ET on Jan. 12.

The offer expires at 5 p.m. ET on Jan. 28.

LNR said that using Treasury prices as of the close of business on Dec. 29 the tender price for the 7 5/8% notes would be 110.296% of par and for the 7¼% notes 109.332% of par, in both cases plus accrued interest and potentially plus the consent fee.

The tender is subject to completion of the acquisition of LNR by Riley Property Holdings LLC and at least a majority of each series of notes being tendered.

The indenture amendments will only become effective if approved by holders of a majority of the principal amount of each series.

Goldman, Sachs & Co. (contact Credit Liability Management Group at 800 828-3182 or call collect 212 357-3019) and Deutsche Bank Securities Inc. (800 553-2826 or call collect 212 250-6008) are dealer managers. MacKenzie Partners Inc. is the information agent (800 322-2885 or proxy@mackenziepartners.com).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.