Teksid gets needed consent to amend 11 3/8% notes

By Angela McDaniels

Seattle, Aug. 9 - Teksid Aluminum Luxembourg Sarl, SCA said it received consents from holders of about 78% of its €205.598 million 11 3/8% senior notes due 2011, enough to amend the indenture.

A consent solicitation for the notes expired at 10 a.m. ET on Wednesday. It began on Aug. 2.

The consents allowed the company and the note trustee to execute a supplemental indenture. The amendments will:

• Allow the sale of Teksid Aluminum Srl and, indirectly, its subsidiary Teksid Aluminum Getti Speciali Srl to Fiat Powertrain Technologies SpA under an agreement dated July 25;

• Allow the repayment or settlement of some intercompany obligations, including the obligations owed by the company and TK Aluminum-Luxembourg Finance Sarl to Teksid Aluminum and Teksid Aluminum Getti, and the obligations owed by Teksid Aluminum Getti to some of the company's indirect subsidiaries organized under the laws of France;

• Permit the transfer of the quotas held by the company in Teksid Aluminum Getti to Teksid Aluminum;

• Extend the time by which an offer to purchase 11 3/8% notes with the proceeds of the sales of each of Teksid Aluminum Poland Sp zoo, the company's indirectly held minority equity interest in Nanjing Teksid Aluminum Foundry and the company's equity interest in Cevher Dokum Sanayi AS is to be made to no later than Oct. 15; and

• Extend the time by which an offer to purchase 11 3/8% notes with the proceeds of each of the Fiat payment and the escrow amount is to be made to no later than 10 business days after receipt of such payments, but in no event prior to Oct. 15.

The company also announced that it completed the Fiat sale on Wednesday. In connection with the closing, €2 million held in escrow was released to the company.

On July 19, Teksid announced the receipt of the necessary consents to amend the 11 3/8% notes in a previous solicitation. That amendment allowed the company to waive default claims arising from the company's failure to comply with a specified provision in the indenture; to extend the time by which it must make offers to purchase the notes after the sale of Teksid Aluminum Poland Sp zoo and the company's equity interests in Nanjing Teksid Aluminum Foundry and Cevher Dokum Sanayi AS to Aug. 15; to extend the time by which it must use the Fiat payment and escrow amount to no later than 10 business days after receipt of the payment, but not before Aug. 15; and to allow payment of the interest due on July 15 to be deducted from the proceeds used to fund the tender offers.

Teksid Aluminum Luxembourg, a maker of aluminum engine castings for the automotive industry, is a subsidiary of Carmagnola, Italy-based TK Aluminum.

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