Bon-Ton tenders for 10¼% notes due 2014, 10 5/8% notes due 2017

By Toni Weeks

San Luis Obispo, Calif., May 13 - Bon-Ton Stores, Inc. began a tender offer for any and all of its outstanding 10¼% senior notes due 2014 and up to $223 million of its 10 5/8% senior secured notes due 2017, according to a press release.

For either note series, holders who validly tender their notes by 5 p.m. ET on May 24, the early tender time, will receive per $1,000 principal amount of notes $1,006.25, which includes an early tender payment of $30.00 per $1,000 of notes. Holders who tender after the early tender time but by the expiration date, midnight ET on June 10, will not receive the early tender payment.

Holders will also receive accrued interest up to, but not including, the settlement date, which is expected to be May 28 for the notes tendered by the early tender time. Notes tendered after that will be settled promptly after the June 10 expiration date, the release noted.

If the company receives tenders for the 10 5/8% notes in an amount that exceeds the cap, Bon-Ton will purchase the notes on a prorated basis.

Notes may be withdrawn at any time prior to the early tender time.

The offers are contingent on the company completing new debt financing.

BofA Merrill Lynch (888 292-0070 or collect 980 388-3646) is the dealer manager for the offers. D.F. King & Co., Inc. (800 848-3416 or 212 269-5550) is the tender agent and information agent.

Bon-Ton operates 272 department stores in 24 states. Its corporate headquarters are in York, Pa., and Milwaukee.

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