Samsonite buys $240.4 million 10¾% notes in tender, to call remainder

New York, June 23 - Samsonite Corp. said it received and accepted tenders of $240.4 million of its 10¾% senior subordinated notes due 2008 or 78% of the outstanding amount in its tender offer for the securities.

The offer expired at midnight ET on June 22.

The company added that it will redeem the remainder on July 11 at a price of 103.5833 plus accrued interest.

Samsonite said on June 9 it had obtained consents from holders of a majority of its 10¾% notes, sufficient to allow it to amend the indenture.

The company said it has also executed a supplemental indenture.

By the consent deadline of midnight ET on June 8, Samsonite received tenders of $240.39 million principal amount or 78% of the notes.

Samsonite announced on May 25 a new tender offer to purchase any and all of its 10¾% notes and a consent solicitation to amend the indenture to eliminate certain covenants and certain provisions relating to events of default along with some other related provisions.

The Denver luggage maker currently has $308.261 million of the securities outstanding.

Samsonite said it will pay $1,042.67 per $1,000 principal amount for notes tendered by the consent deadline. The amount includes a $20 consent payment.

For notes tendered after the consent deadline but before the expiration date of midnight ET on June 22, Samsonite will pay $1,022.67 per $1,000 principal amount.

Samsonite will also pay accrued interest up to but not including the payment date.

Holders who tender will be deemed to have consented to the amendments.

The offer is subject to conditions including the receipt of at least $325 million from the sale of new notes.

Deutsche Bank Securities Inc. (call collect 212 250-4270) and Merrill Lynch & Co. (212 449-4914 or 888 385-2663) are dealer managers and solicitation agents. D.F. King & Co. Inc. (800 628-8532) is the information agent.

Samsonite on May 14 terminated its previous tender offer and consent solicitation, citing market conditions for canceling the tender offer and for its related decision to withdraw a planned $325 million offering of new bonds whose proceeds would have funded the tender offer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.