Tekni-Plex's amendment to 12¾% notes becomes effective after $12 million equity investment

New York, June 14 - Tekni-Plex, Inc. said the amendment to its 12¾% senior subordinated notes due 2010 became effective after it received $12 million of equity from existing investors.

The latest financing, in conjunction with $19 million previously received, satisfies the condition to the amendment that the company raise at least $30 million in new equity.

On April 19 Tekni-Plex said it had received the necessary consents to amend the indenture of its 12¾% notes.

Under the solicitation, Tekni-Plex was seeking permission to increase the amount of debt outstanding at any time to 150% of the net cash proceeds received from the issuance of capital stock or an equity contribution related to the capital stock. The extra debt will be capped at $90 million.

In addition, the amendment adds a covenant limiting the type of acquisitions the company and some of its subsidiaries can make.

Successful completion of the solicitation follows multiple extensions and then an amendment announced on April 18. Tekni-Plex also increased the consent payment on offer to $20.00 per $1,000 from $5.00 per $1,000.

Previously the Coppell, Texas, packaging products manufacturer wanted to amend the indenture to allow a $125 million increase in the amount of debt it can have outstanding at any time and additional flexibility in its ability to incur debt.

The solicitation was announced on March 15.

Citigroup is the solicitation agent (800 558-3745 or call collect 212 723-6106). Bondholder Services Corp. is the information agent.

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