Fifth & Pacific offers to purchase up to $75 million of 10½% notes

By Marisa Wong

Madison, Wis., Feb. 5 - Fifth & Pacific Cos., Inc. announced it began an offer to purchase up to $75 million principal amount of its 10½% senior secured notes due 2019.

The company is offering to purchase the notes at par plus accrued interest to the payment date.

The offer expires at 5 p.m. ET on March 7.

If the total amount tendered exceeds the offer amount, the notes will be accepted for purchase on a pro rata basis.

Tenders may be withdrawn no later than the expiration time.

The purchase offer is being made in connection with the company's sale of all issued and outstanding equity interests of wholly owned subsidiary Lucky Brand Dungarees, Inc., completed on Feb. 3.

The Lucky Brand sale constituted an asset sale under the indenture for the 10½% notes. Under the terms of the notes, the company is required to make a net proceeds offer, and the net proceeds from the asset sale came to $75 million. In the event that the aggregate amount of tendered and accepted notes is less than the offer amount, remaining proceeds from the asset sale will be available for other uses.

Based in New York, Fifth & Pacific owns and markets clothing brands.

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