Provident Funding tenders, seeks consents for $400 million 10¼% notes

By Susanna Moon

Chicago, May 20 - Provident Funding Associates, LP and PFG Finance Corp. began a tender offer and consent solicitation for their $400 million principal amount of outstanding 10¼% senior secured notes due 2017.

Holders will receive the total purchase price of $1,134.01 per $1,000 principal amount of notes tendered by the consent payment deadline of 5 p.m. ET on June 3.

The total payment includes a consent payment of $30 per $1,000 principal amount.

Those who tender after the consent payment date will receive $1,104.01 per $1,000 of notes.

The company also will pay accrued interest up to but excluding the settlement date, which will be June 4 for early tendered notes and June 18 for remaining tenders.

The tender offer will end at midnight ET on June 17.

The issuers are soliciting consents to amend the notes to eliminate most of the covenants and events of default and to release the liens on the assets that secure the notes, according to a company press release.

The company must secured consents from holders of at least a majority of the outstanding notes to amend the notes and at least two-thirds of the notes to release the liens.

Tendered notes may be withdrawn by the consent date.

The dealer manager is BofA Merrill Lynch (800 292-0070 or collect 980 387-3907). The information agent is D.F. King & Co., Inc. (800 628-8532 or banks and brokers 212 269-5550).

Provident is a San Bruno, Calif.-based mortgage company that originates and services residential mortgage loans.

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