Chemtura extends tender for 7 7/8% notes; financing condition not met

By Angela McDaniels

Tacoma, Wash., July 8 - Chemtura Corp. extended the tender offer for its outstanding $455 million of 7 7/8% senior notes due 2018 to 4 p.m. ET on July 19 from 11:59 p.m. ET on July 8, according to a company news release.

In addition, the early settlement feature was eliminated.

The company said it made the changes because the financing condition has not yet been satisfied. The tender offer is conditioned on the completion of an offering of senior debt securities with enough proceeds to fund the offer.

As of 5 p.m. ET on July 5, holders had tendered $348,346,000 principal amount, or 76.56%, of the notes. The amount is unchanged from the consent date, which was 5 p.m. ET on June 21 and has not been extended.

As previously reported, the company is also soliciting consents to amend the indenture to eliminate substantially all of the restrictive covenants and some events of default.

Holders who tender their notes are deemed to consent to the proposed amendments, and holders who consent are required to tender their notes.

The company needed consents from holders of at least a majority of the outstanding notes, and this condition has been met. A supplemental indenture to the notes has been executed, and the amendments will become operative once the tendered notes are accepted for purchase.

The purchase price is $1,117.50 per $1,000 principal amount of notes. This includes a consent fee of $30.00 for each note tendered by the consent date.

Holders who tender their notes will also receive accrued interest up to but excluding the payment date.

The tender offer began June 10.

As of the consent date, tendered notes may no longer be withdrawn.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) is the dealer manager and solicitation agent, and D.F. King & Co. Inc. (800 829-6551 or 212 269-5550) is the tender agent and information agent.

Chemtura is a Middlebury, Conn.-based manufacturer and marketer of specialty chemicals, agrochemicals and pool, spa and home care products.

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