Alderwoods receives tenders of $310 million 12¼% notes by consent deadline

New York, Aug. 4 - Alderwoods Group, Inc. said it received tenders of $310.0 million principal amount or 96.7% of its 12¼% senior notes due 2009 by the consent deadline.

As a result, the company has enough consents to amend the indenture.

However the amendments will not become operative until Alderwoods pays for the notes.

Alderwoods said on July 22 it had begun a cash tender offer and consent solicitation for its $320.752 million principal amount of 12¼% notes.

The price per $1,000 principal amount of notes will be based on a fixed spread of 50 basis points over the yield to maturity on the price determination date of the 1¾% U.S. Treasury note due Dec. 31, 2004. The price determination date will be Aug. 5 unless the offer is extended more than three business days in which case it will be 10 business days before the expiration date.

The total includes a consent payment of $30.00 per $1,000 principal amount that will only be paid to holders who tender by the consent deadline of 5 p.m. ET on Aug. 4.

The consent solicitation is to amend the indenture to eliminate substantially all of the restrictive covenants.

Holders may not tender without delivering consents and vice versa.

Alderwoods will also pay accrued interest.

Using the reference Treasury yield at 2 p.m. ET on July 22, the total payment for the notes excluding accrued interest would be $1,099.06, assuming a settlement date of Aug. 19.

The offer ends at midnight ET on Aug. 18.

The tender is subject to conditions, including the receipt of financing and the receipt of consents from holders of a majority of the principal amount of the notes.

Banc of America Securities LLC is dealer manager and solicitation agent (contact High Yield Special Products at 888 292-0070 or call collect 704 388-4813). Global Bondholder Services Corp. is the information agent (866 294-2200 or call collect 212 430-3774).

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