Harbinger completes offer for 10 5/8% notes; remaining notes called

By Jennifer Chiou

New York, Jan. 9 - Harbinger Group Inc. announced the completion of its tender offer and consent solicitation for its $500 million principal amount of 10 5/8% senior secured notes due Nov. 15, 2015.

According to an 8-K filing with the Securities and Exchange Commission, the company received an additional $25,000 of tenders on top of the early tenders and consents, resulting in overall participation from holders of 99.6% of the securities.

The early deadline was 5 p.m. ET on Dec. 21, and the offer ended at midnight ET on Jan. 8.

Additionally, the company will call all remaining notes on Jan. 23 at 110.4022, including accrued interest.

As reported, Harbinger received the necessary consents to remove substantially all of the restrictive covenants and certain other provisions in the indenture. The company needed consents from holders of a majority of the outstanding notes for some proposed amendments and at least 75% of the outstanding notes for additional proposed amendments.

As a result, the company entered into a supplemental indenture effecting the amendments. The company previously said it received the required consents to authorize release of the liens and the security interest in the collateral securing the notes.

The company began the consent solicitation and the related tender offer on Dec. 10.

The total purchase price was $1,091.81 for each $1,000 principal amount of notes tendered by the early tender date. The total payment included a $20.00 consent payment.

Those who tendered after the early deadline received the tender payment of $1,071.81 per $1,000 principal amount and accrued interest.

Initial settlement occurred in Dec. 24, and final settlement was slated for Jan. 9.

The tender offer and consent solicitation were conditioned on completion of debt financing.

Deutsche Bank Securities Inc. (855 287-1922) was the dealer manager. D.F. King & Co., Inc. (800 431-9633) was the information agent and the depositary.

The issuer is a New York-based diversified holding company.

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