Buckeye fails to get consents to amend 8½% notes; to call $20 million 9¼% notes

New York, Feb. 17 - Buckeye Technologies Inc. said it failed to draw sufficient consents to amend its $200 million principal amount of 8½% senior notes due Oct. 1, 2013 despite an increase in the fee on offer.

The solicitation expired at 5 p.m. ET on Feb. 16 after being extended from 5 p.m. ET on Feb. 14.

The company also announced that it will redeem $20 million principal amount of its $100 million 9¼% senior subordinated notes due 2008 on March 23.

Buckeye's failure to receive consents came despite an increase in the fee on offer to $10.00 per $1,000 principal amount, up from $5.00 previously.

As announced on Jan. 27, the Memphis-based maker of specialty fibers and non-woven materials wants to amend the note indenture to allow it to redeem $100 million of its 9¼% senior subordinated notes due Sept. 15, 2008.

As part of the redemption, Buckeye intends to amend its credit facilities to add on an extra $85 million term loan, among other changes.

Buckeye needs consents from holders of a majority of the principal amount of the notes.

Citigroup Global Markets Inc. is solicitation agent (contact Liability Management Group at 800 558-3745 or call collect 212 723-6106). Global Bondholders Services Corp. is information agent (866 924-2200 or call collect 212 430-3774).

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