Hawk buys 51.5% of 12% notes in tender

New York, Oct. 29 - Hawk Corp. said it purchased $34.13 million principal amount, or 51.5%, of its $66.3 million 12% senior notes due 2006 in its tender offer for the securities.

Hawk previously announced on Oct. 15 that it had received tenders and consents for the same amount of the notes by the consent deadline.

As a result, the company had sufficient consents to amend the note indenture.

Hawk announced on Sept. 30 that it had begun a cash tender offer for its 12% senior notes.

The Cleveland maker of highly engineered products was also soliciting consents to amend the note indenture.

Hawk was offering to pay par for the notes. Holders who tendered by the consent deadline of 5 p.m. ET on Oct. 14 will also receive a consent payment of $8.79 per $1,000 principal amount.

The tender ended at midnight ET on Thursday.

All tendering holders will also receive accrued interest up to but excluding the date of payment.

Holders who tender are required to consent to the indenture amendments that will eliminate substantially all of the restrictive covenants and certain events of default. In addition, holders may not give consents without tendering.

The consent solicitation required approval of holders of a majority of the notes.

The tender was subject to tenders of a majority of the principal amount outstanding, to Hawk obtaining the financing necessary to complete the tender offer and to related transactions and other customary conditions.

Jefferies & Co. Inc. is the dealer manager (504 681-5774).

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