Mueller Water receives consents needed to amend 10%, 14¾% notes

By Angela McDaniels

Seattle, May 14 - Mueller Water Products, Inc. said it received tenders and consents from holders of $144.7 million, or more than 99%, of its $144.95 million 14¾% senior discount notes due 2014 and from holders of $204.7 million, or more than 99%, of the $204.75 million 10% senior subordinated notes due 2012 co-issued by Mueller Group, LLC and Mueller Group Co-Issuer, Inc.

The consents will allow the company to amend the note indentures to eliminate substantially all of the restrictive covenants and some events of default, amend some provisions relating to mergers and consolidations and modify some terms of the defeasance and satisfaction and discharge provisions.

Mueller said it will execute the supplemental indentures shortly and that the amendments will become operative immediately prior to the acceptance of the tendered notes for payment.

The tender offers and consent solicitations are being conducted in connection with the refinancing of Mueller's existing credit facility and outstanding notes, according to a company news release.

The tender offers will expire at midnight ET on May 31. They began on May 1.

For each $1,000 principal amount of 10% notes tendered, the payout will be determined using the present value of $1,050 - the redemption price on May 1, 2008 - and the yield to maturity of the 4 7/8% U.S. Treasury note due April 30, 2008 plus 50 basis points.

For each $1,000 principal amount of 14¾% notes, the payout will be determined using the present value of $1,073.85 - the redemption price on April 15, 2009 - and the yield to maturity of the 4½% U.S. Treasury note due March 31, 2009 plus 50 bps.

Mueller said it expects to determine the tender consideration at 2 p.m. ET on May 17.

The total consideration will include a consent payment of $30 per $1,000 principal amount of notes tendered by 5 p.m. ET on May 14, the consent deadline.

Holders of the 10% notes will also receive accrued interest up to but excluding the payment date.

Settlement of the offers is conditioned on the successful refinancing of the company's existing credit facility and outstanding notes.

Banc of America Securities LLC (888 292-0070 or 704 388-9217) and J.P. Morgan Securities Inc. (212 270-3994) are the dealer managers and solicitation agents. Global Bondholder Services Corp. (866 924-2200 or 212 430-3774) is the information agent.

Atlanta-based Mueller manufactures infrastructure and flow-control products for water distribution networks and treatment facilities.

© 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.