Associated Brands gets waiver on, restructures C$11 million exchangeables

By Sheri Kasprzak

New York, Sept. 22 - Associated Brands Income Fund said it received a waiver on defaults related to C$11 million in exchangeable debentures and restructured the securities.

The debentures, which are held by Torquest Funds, will be converted into three new series of exchangeable debentures in the same principal amount.

The existing exchange price of C$4.00 per unit will be reset to C$0.75 for C$3.85 million in principal, to C$2.50 for C$3,575,000 in principal and to C$3.50 for C$3,575,000 in principal.

Interest on the debentures accrued from Nov. 14, 2005 through Sept. 29, 2006, for a total of C$780,000, will be paid in units at a price equal to 97% of the weighted average price for the five trading days before the due date.

The debentures still bear interest at 9% annually and remain due on Sept. 30, 2008.

In other news, Associated also amended the terms of its C$43.3 million bank facility. In particular, the company will now be required to make monthly payments against the Canadian term facility until it is fully repaid and then against its U.S. facility until it is fully repaid.

Toronto-based Associated Brands manufactures dry-blend food products and household products.

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