Stratus Technologies completes tender for 10 3/8% notes with $142.9 million purchased

New York, April 10 - Stratus Technologies, Inc. said it bought a total of $142.9 million or 98.62% of its $144.885 million 10 3/8% senior notes due 2007 as part of its tender offer.

The amount is up marginally from the $142.8 million or 98.55% purchased at the first payment deadline, with the response announced on March 29 after the company closed on a new $330 million credit facility.

The tender expired at 5 p.m. ET on April 10.

At the previous announcement, Stratus said that it expected the early payment date to be March 29, not March 28.

As a result, the payment was changed to $1,082.99 per $1,000 principal amount instead of $1,083.12. Both figures include a $30.00 per $1,000 consent payment that will only be paid to holders who tendered with consents by the consent deadline.

Stratus also said at the time that it was extending the expiration to 5 p.m. ET on April 10 from 5 p.m. ET on April 5.

At its previous announcement on March 21, Stratus said holders tendered $142.785 million or 98.55% of the 10 3/8% notes by the consent deadline. Consequently the company has sufficient approvals to amend the note indenture.

As announced on March 17, assuming a March 28 payment date, for each $1,000 principal amount of notes, Stratus will pay $1,083.12, including a $30.00 per $1,000 consent payment that will only be paid to holders who tender with consents by the consent deadline. The payment date and total amount was subsequently revised.

The payout is based on a fixed spread of 50 basis points over the yield of the 2 7/8% U.S. Treasury note due Nov. 30, 2006.

Pricing was set at 2 p.m. ET on March 17. The tender offer yield was 5.304%.

Accrued interest up to but excluding the payment date will also be paid.

The consent deadline was 5 p.m. ET on March 21 and the offer expires at 5 p.m. ET on April 5, a deadline now extended.

In addition to the tender, announced March 8, the Maynard, Mass., supplier of high availability servers was also soliciting consents to amend the note indenture to eliminate substantially all the restrictive covenants and certain events of default and to amend other provisions.

Stratus also said it changed the first payment date to promptly following the acceptance of the notes for purchase, originally expected to be March 28. The date was changed from the first business day after the consent date.

The offer is subject to conditions including the receipt of consents for a majority of the notes and Stratus raising sufficient funds from new debt to pay for the tender.

Goldman, Sachs & Co. is dealer manager (contact Credit Liability Management Group at 800 828-3182 or call collect 212 357-7867). D.F. King & Co., Inc. is the information agent and tender agent (800 290-6426 or call collect 212 269-5550).

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