Metaldyne says tender for convertibles over-subscribed, to pay minimum price

New York, Aug. 21 - Metaldyne Corp. said its modified dutch auction for its 4½% convertible subordinated debentures due 2003 was oversubscribed at the minimum offer price.

As a result, the Plymouth, Mich. auto parts maker will pay $985 per $1,000 principal amount in the transaction and spend a total of $77.0 million to buy back $78.2 million principal amount of the convertibles.

Following Metaldyne's November 2000 "going private" transaction, the debentures are no longer convertible into stock.

Metaldyne said a total of $148.0 million of the securities were tendered including $112.0 million at the minimum price. Because the offer was oversubscribed, the company will pro rate purchases, buying approximately 70% of the amount submitted.

The tender expired at 9.00 a.m. ET on Aug. 21.

Metaldyne announced the tender offer in July saying it would accept offers at prices from $985.00 to $997.50 per $1,000 principal amount.

Financing will come from the previous sale of a 66% fully diluted common equity interest in the company's former TriMas subsidiary.

Credit Suisse First Boston Corp. was the dealer manager, Bank One Trust Company, NA the depositary and D.F. King & Co., Inc. the information agent for the tender offer.

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