Saks says $261 million 8¼% notes tendered in exchanged

New York, Dec. 4 - Saks Inc. (B1) it had completed its previously announced offer to exchange cash and new debt for its outstanding 8¼% notes due 2008 with $261.226 million principal amount or about 58% of the outstanding amount tendered by the time the offer expired as scheduled at 5 p.m. ET on Dec. 3, without extension.

Saks accepted all validly tendered bonds. Upon closing of the exchange offer, which is scheduled for Dec. 8, about $208.105 million new 7% notes due 2013 - which will be given to the holders of the 8¼% notes in exchange for their notes-will be issued.

Saks also said that since it had previously received consents to proposed indenture changes from the holders of a majority of the 8¼% notes, fulfilling a condition to the exchange offer, the company - along with the trustee for the notes - plans to execute a supplemental indenture incorporating the indenture changes.

As previously announced, Saks, a Birmingham, Ala.-based operator of retail store chains, said on Nov. 4 that it would offer to exchange cash and new debt for its $451.55 million of outstanding 8¼% notes and would solicit noteholder consents to proposed changes in the notes' indenture.

Saks said that the exchange offer would terminate at 5 p.m. ET on Dec. 3, set a consent deadline of Nov. 18 and set a withdrawal deadline (up until which tenders of the existing notes could be withdrawn at any time) of 5 p.m. ET on Nov. 20, with all deadlines subject to possible extension.

Saks said that it would offer to exchange $333 in cash - including a $20 consent payment for those holders tendering their notes by the consent deadline - and $797 in principal amount of new 7% notes due 2013 per $1,000 principal amount of the 8¼% notes.

The company said that holders tendering their 8¼% notes would be required to consent to the proposed indenture amendment. Saks issued $500 million of the 8¼% notes in November 1999.

Saks said the exchange offer would be subject to customary conditions, including the receipt of more than $225.775 million in principal amount of the 8¼% notes. The proposed indenture amendment would require the receipt of consent from holders of a majority of the outstanding 8 ¼% notes.

On Nov. 19, Saks said that Global Bondholder Services Inc. - the exchange agent for the exchange offer - advised it that, as of 5 p.m. ET on Nov. 18, about $258.375 million of the notes, or around 57.2% of the outstanding amount, had been validly tendered under the terms of the exchange offer, fulfilling the minimum tender and minimum consent conditions.

© 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.