Southern Equipment receives tenders for all of 9½% notes, sets pricing

By Laura Lutz

Washington, Dec. 13 - Southern Equipment Co., Inc. set pricing in its tender offer for its $150 million outstanding 9½% senior subordinated notes due 2012 and announced that it has received tenders for all of the notes.

As of the consent deadline on Dec. 4, the company had received tenders from holders of $149.7 million, or 99.8%, of the notes.

For each $1,000 principal amount of notes tendered before the consent deadline, the company will pay $1,114.07. Notes tendered after the consent deadline will receive the same amount, less the consent fee.

The payout is based on the present value of $1,047.50, the redemption amount for the notes on their earliest call date on Nov. 1, 2008, plus accrued interest, discounted using the bid-side yield to maturity of the 4.75% Treasury due Nov. 15, 2008 and 75 basis points.

The company will also pay accrued interest for the notes.

The consents it received allow the company to eliminate or amend some restrictive covenants in the note indenture. The supplemental indenture will become operative once the company completes the tender offer for the notes, which began on Nov. 17 and ends at midnight ET on Dec. 15.

The company said settlement of the offer depends on the receipt of a senior unsecured syndicated term loan facility of up to $480 million 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 concrete producer based in Raleigh, N.C.

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