Champion Enterprises receives tenders of 93% of 11¼% notes, plans to call remainder

New York, Nov. 1 - Champion Enterprises, Inc. said that its Champion Home Builders Co. subsidiary completed its tender offer for its $88.43 million of 11¼% senior notes due 2007.

By the expiration at midnight ET on Oct. 28, holders had tendered $82.4 million or 93% of the notes.

Champion expects to redeem the remaining $6 million during the fourth quarter.

As announced on Sept. 28, Champion Home Builders was offering a price per $1,000 principal amount based on the sum of the present value of the scheduled payment of principal on the notes at their maturity on April 15, 2007 and the present value of the scheduled interest payments through maturity, discounted using a fixed spread of 50 basis points over the yield of the 3.625% U.S. Treasury note due April 30, 2007.

The Auburn Hills, Mich., maker of factory-built housing was also soliciting consents to amend the note indenture to eliminate substantially all the restrictive covenants and certain events of default.

Holders who tendered by the consent date will receive the total described above, which includes a $20.00 consent payment per $1,000 principal amount. Holders who tendered after the consent date will not receive the consent payment.

The consent date was 5 p.m. ET on Oct. 14.

Champion will also pay accrued interest up to but excluding the payment date.

Funding for the tender came from a new $200 million credit facility, which will also be used to refinance the company's existing bank debt and for working capital.

Credit Suisse First Boston is dealer manager and solicitation agent (call collect 212 325-7596 or 800 820-1653). The Altman Group, Inc. is the information agent for the offer (call collect 201 806-7300 or 866 416-0554).

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