Accellent wraps tender offers, issues call for 8 3/8%, 10% notes

By Toni Weeks

San Luis Obispo, Calif., March 12 - Accellent Inc. announced the completion of its tender offers for its $400 million of 8 3/8% senior secured notes due 2017 and $315 million of 10% senior subordinated notes due 2017.

The company took in a total of $368,651,000, or 92.16%, of the 8 3/8% notes and $244,622,000, or 77.66%, of the 10% notes by the expiration date, 11:59 p.m. ET on March 11.

These are the same amounts that were tendered by the early tender deadline of 5 p.m. ET on Feb. 25.

Accellent also issued a call to redeem all of the notes remaining outstanding - $31,349,000 of 8 3/8% notes and $70,378,000 of 10% notes - after completion of the tender offers.

The notes will be redeemed on April 11. The redemption price per $1,000 principal amount of notes is $1,030 plus about $16.28 in accrued interest for the 8 3/8% notes and $1,075 plus accrued interest of roughly $44.44 for the 10% notes.

As previously announced, the total tender offer price for each $1,000 principal amount was $1,044.19 for the 8 3/8% notes and $1,081.00 for the 10% notes.

The total payments include a $30.00 early tender payment for each $1,000 principal amount of notes tendered by the early tender date.

The company also is paying accrued interest up to but excluding the settlement date.

The total payment for the 8 3/8% notes was determined with consideration given to the company's right to redeem up to $40 million of the 8 3/8% notes at 103% of par and the remaining 8 3/8% notes at 104.188% of par, according to a previous company press release.

The total payment for the 10% notes was determined with consideration given to the company's right to redeem the 10% notes at 107.5% of par.

The company previously said it expected to redeem any notes that remained outstanding after the completion of the offers and that it expected the redemption prices to be less than the total offer payments.

The tender offers are conditioned on the completion of the company's acquisition of Lake Region Medical Holdings, Inc. and the receipt of $1.13 billion of financing, which will be used to complete the merger and to refinance the notes and the company's existing credit facilities.

The dealer managers were Goldman Sachs & Co. (800 828-3182 or 212 357-0215) and UBS Securities LLC (888 719-4210 or 203 719-4210). The depositary and information agent was Global Bondholder Services Corp. (866 807-2200 or, for banks and brokers, 212 430-3774).

Accellent provides outsourced manufacturing and engineering services to the medical device industry and is based in Wilmington, Mass. The company began the tender offers on Feb. 11.

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