Accellent prices tender for 10% notes

New York, Nov. 4 - Accellent Corp. said it set pricing in its tender offer for its $175 million of 10% senior subordinated notes due 2012.

Holders who tendered before the consent deadline will receive $1,137.01 per $1,000 principal amount, including the $30.00 per $1,000 consent payment.

Pricing was fixed at 10 a.m. ET on Nov. 4.

In its previous announcement on Nov. 3, Accellent said it received consents from holders of all $175 million of the notes. As a result, it can amend the notes' indenture to eliminate restrictive and reporting covenants as well as events of default.

As announced on Oct. 21, Accellent is also tendering for the notes.

The offer and consent solicitation are for the previously announced merger between parent Accellent Inc. and Accellent Acquisition Corp., an entity controlled by affiliates of Kohlberg Kravis Roberts & Co. LP.

The consent solicitation ended at 5 p.m. ET on Nov. 3. The tender offer expires at 5 p.m. ET on Nov. 21, unless extended.

For each $1,000 principal amount of notes, the company based its payment on the present value of the notes on the initial payment date of $1,050.00 - the redemption price for the notes on July 15, 2008, the earliest call date - and interest up to the redemption date, discounted using the yield to maturity of the 4 1/8% Treasury due Aug. 15, 2008 and 50 basis points.

The offer is conditioned upon the receipt of consents from a majority of noteholders and closing of the merger.

Credit Suisse First Boston LLC (800 820-1653 or call collect 212 538-0652) and J.P. Morgan Securities Inc. (866 834-4666 or call collect 212 834-3424) are dealer managers. MacKenzie Partners, Inc. is the information agent (212 929-5500).

Based in Wilmington, Mass., Accellent provides contract manufacturing and design services to medical device manufacturers in the cardiology, endoscopy and orthopedic markets.

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