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U.S. Concrete starts exchange offer for 9.5% convertible notes
New York, Feb. 6 - U.S. Concrete, Inc. said it has begun an exchange offer in which it is offering up to $69.3 million of new 9.5% senior secured notes due 2015 for all of its $55 million of 9.5% convertible secured notes due 2015.
Holders who tender will receive $1,260 principal amount of new notes for each $1,000 principal amount of the existing convertibles.
The exchange ends at 5 p.m. ET on March 15.
As part of the exchange, the company is soliciting consents to the convertibles to eliminate substantially all of the restrictive covenants and certain events of default and provide for a release of all the liens on the collateral securing the notes. Holders may not tender without delivering consents or deliver consents without tendering.
The offer is subject to at least 82.5% of the convertibles being tendered and consents being received from holders of 66 2/3% of the notes.
The convertibles are currently convertible into stock at a price of $10.50 per share. U.S. Concrete stock closed at $11.54 on Wednesday.
U.S. Concrete's new notes will mature on Oct. 1, 2015 and will be callable at par through Dec. 31, 2013, at 102 until Dec. 31, 2014 and 103 after that until maturity.
Global Bondholder Services Corp. is the exchange agent (212 430-3774 for banks and brokers or 866 924-2200 for others).
The company previously announced that on Dec. 20 it had entered into an exchange and consent agreement with two holders of its convertible notes.
U.S. Concrete is a Euless, Texas-based company that operates through two segments: ready-mixed concrete and concrete-related products as well as precast concrete products.
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