Alliance One wraps oversubscribed tender for $60 million convertibles

By Susanna Moon

Chicago, Aug. 30 - Alliance One International, Inc. said investors had tendered $114,068,000 of its $115 million of outstanding 5.5% convertible senior subordinated notes due 2014 by the end of the offer at midnight ET on Aug. 29.

The company will purchase $60 million of the convertibles using a proration factor of about 52.62% on Aug. 30, according to a press release.

Alliance One amended the cash tender offer for the notes on Aug. 16, doubling the offer cap from the $30 million size added on July 30. The company originally planned to tender for any and all notes when the offer began July 17.

The offer also was extended from Aug. 16.

As of 5 p.m. on Aug. 15, investors had tendered $41,232,000 principal amount of the convertibles.

As previously announced, the company offered to pay $1,030 per $1,000 principal amount of notes plus accrued interest to the settlement date.

Alliance One modified the financing condition on July 30 to specify that the offer was conditioned on the completion of the issue of $735 million principal amount of 9.875% senior secured second-lien notes due 2021. The note offer was expected to settle Aug. 1.

The tender offer was also conditioned on the redemption of all of the company's 10% senior notes due 2016 and the satisfaction and discharge of the indenture governing those notes prior to Aug. 16 and an amendment to, or replacement of, Alliance One's $250 million senior secured revolving credit facility to permit the redemption of all of the 10% notes, according to a previous press release.

The company had planned to issue $790 million of long-term debt.

As previously reported, the company called the 10% notes on July 1. They were redeemed at 105 on Aug. 2. The redemption was conditioned on financing.

Deutsche Bank Securities Inc. is the dealer manager (212 250-7527 or 855 287-1922). D.F. King & Co., Inc. is the information agent (212 269-5550 or 800 423-2107).

Alliance One is a Morrisville, N.C.-based leaf tobacco merchant.

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