Avecia starts dutch auction tender for 11% notes

New York, Jan. 4 - Avecia Group plc said it has begun a cash tender offer and consent solicitation for its 11% senior notes due July 1, 2009.

The price in the tender offer will be set using a modified dutch auction and will be between $861.00 and $990.00 per $1,000 principal amount. Avecia will also pay accrued interest up to but excluding the settlement date.

In addition, holders who tender by the consent deadline will also receive a consent payment of $10.00 per $1,000 principal amount, regardless of whether their notes are accepted for purchase.

Avecia said it expects to have $459 million available to fund note purchases and make consent payments. As a result, it will not be buying all the outstanding notes.

After the consent deadline, Avecia will calculate the amount of consent payments owing to holders who validly tendered and did not withdraw their notes. The remaining amount will be used to make purchases of notes.

The consent solicitation is to amend the note indenture to eliminate or modify certain restrictive covenants and add certain provisions which would waive the applicability of certain restrictive covenants with respect to the sale of the company's NeoResins business.

The consent deadline is 5 p.m. ET on Jan. 18. The offer expires at 5 p.m. ET on Feb. 1.

The purchase of notes is subject to the valid tender delivery of related consents by holders of at least a majority of the outstanding notes and completion of the sale of the company's NeoResins business.

Goldman, Sachs & Co. is dealer manager (contact Liability Management Group at 212 357 3019). The tender agent is Bondholder Services Corp. (contact Corporate Actions at 212 430-3774), and the Luxembourg tender agent is Kredietbank SA Luxembourgeoise (contact Cecilia Guichart at +352 47 97 39 35).

© 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.