Southern Equipment solicits tenders, consents for 9½% notes

By Laura Lutz

Des Moines, Nov. 17 - Southern Equipment Co., Inc. launched a tender offer and consent solicitation for all of its $150 million outstanding principal amount of 9½% senior subordinated notes due 2012.

The offer will expire at midnight ET on Dec. 15.

For each $1,000 principal amount of note tendered, the company will pay the yield to the maturity date of the notes, which will be equal to the sum of $1,000 and interest to the maturity date equal to the bid-side yield to the maturity date of the 4% U.S. Treasury due Nov. 15, 2012 plus 75 basis points.

That amount includes a $30 consent payment for notes tendered before 5 p.m. ET on Dec. 4. Notes tendered after the consent deadline will not receive the consent payment.

The company will also pay accrued interest for the notes.

Pricing will be calculated on Dec. 13 or the second business day before expiration of the offer.

The company is soliciting consents to eliminate or amend some restrictive covenants in the note indenture.

Notes tendered before the consent deadline may not be withdrawn after it.

Settlement of the offer depends on the company's entering into a senior unsecured syndicated term loan facility of up to $480 million, receipt of tenders for a majority of the notes and other conditions.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6108) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 937-2200 or 212 430-3774) is the information agent.

Southern Equipment is a concreted producer based in Raleigh, N.C.

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