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Omnova gets consents needed to amend 11¼% notes, prices tender consideration
By Angela McDaniels
Seattle, May 4 - Omnova Solutions Inc. has received enough consents to amend the note indenture governing its $165 million of 11¼% senior secured notes due 2010 to eliminate substantially all of the restrictive covenants, according to a company news release.
The company said it executed the supplemental indenture, which will become operative after the tender offer for the notes expires at 8 a.m. ET on May 18.
The consent solicitation and tender offer began on April 20. The consent deadline was May 3.
As of the consent deadline, holders had tendered $162 million, or 98.182%, of the notes, according to the release.
For each $1,000 principal amount of notes tendered, Omnova will pay $1,058.10, which includes a consent fee of $30.00 for notes tendered by the consent deadline.
Tendering noteholders will also receive accrued interest up to but excluding the payment date.
The tender consideration was determined on May 4 and equals 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 3½% Treasury due May 31, 2007 plus a fixed spread of 50 basis points, less accrued interest up to but excluding the payment date.
The company plans to pay the tender consideration before June 1. If the payment date occurs 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.
Deutsche Bank Securities Inc. (call collect 212 250-5655) is the dealer manager. 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 and on the amendment of its existing senior secured credit facility.
The Fairlawn, Ohio, specialty chemical company announced plans for the redemption on March 20.
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