Schawk amends $75 million of senior notes due 2010 through 2014

By Kenneth Lim

Boston, June 12 - Schawk, Inc. amended the terms of an initial $75 million of notes to increase their coupons by 400 basis points, according to a filing with the Securities and Exchange Commission.

Schawk prepaid $5.2 million and, by Sept. 30, 2009, will repay an additional $1.8 million of three series of senior notes issued in 2005 - $10 million of 4.81% series C notes due Jan. 28, 2010, $20 million of 4.99% series D notes due Jan. 28, 2011 and $20 million of 5.17% series E senior notes due Jan. 28, 2012.

The series C notes will now comprise $8.6 million of 8.81% pay-in-kind notes due 2010. The series D notes will now consist of $17.2 million of 8.99% PIK notes due 2011, while the series E notes will become $17.2 million of 9.17% PIK notes due 2012.

Prudential Insurance Co. of America and related funds are the noteholders.

Schawk also prepaid $1.9 million and, by Sept. 30, 2009, will repay an additional $0.6 million of two series of senior notes issued in 2003 - $15 million of 4.9% series 2003-A tranche A notes due Dec. 31, 2013 and $10 million of 4.98% series 2003-A tranche B notes due April 30, 2014.

The tranche A notes will now bear interest at 8.9% and the remaining principal will be paid in annual installments of $1.8 million from 2009 to 2013. The tranche B notes will now bear interest at 8.98% and the remaining principal will be paid in annual installments of $1.2 million from 2010 to 2014.

Massachusetts Mutual Life Insurance Co. and related funds are the noteholders.

Schawk is a Des Plaines, Ill.-based graphics company.

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