Omnova tenders for 11¼% notes

By Jennifer Chiou

New York, April 20 - Omnova Solutions Inc. announced the start of a cash tender offer for any and all of its $165 million of 11¼% senior secured notes due 2010.

The Fairlawn, Ohio, specialty chemical company is also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants.

The consent deadline is 5 p.m. ET on May 3. The offer ends at 8 a.m. ET on May 18.

Assuming a payment date prior to June 1, the company said it will determine the payout at 2 p.m. ET on May 4.

For each $1,000 principal amount, the company said it will pay the present value of $1,056.25, the redemption price for the notes on June 1, 2007, which is the earliest redemption date, plus interest payments through June 1, discounted using the 3.5% Treasury due May 31, 2007, plus a fixed spread of 50 basis points, less accrued interest to, but not including, the payment date.

If the payment date is on or after June 1, Omnova said it will pay $1,060.94, which represents the redemption price on June 1, plus the equivalent of two weeks of interest.

Those who tender prior to the early deadline will receive the $30.00 consent payment, which is included in the payout.

Deutsche Bank Securities Inc. is the dealer manager (call collect 212 250-5655). The information agent is MacKenzie Partners, Inc. (800 322-2885).

The offer is conditioned upon the company entering into a new $150 million term loan as well as the amendment of its existing senior secured credit facility.

Omnova announced plans for the redemption on March 20.

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