Tekni-Plex reduces planned extra debt, ups payment in consent solicitation for 12¾% notes

New York, April 18 - Tekni-Plex Inc. said it has modified its solicitation of consents to amend the indenture of its 12¾% senior subordinated notes due 2010.

The company is now seeking permission to increase the amount of debt outstanding at any time to 150% of the net cash proceeds received from the issuance of capital stock or an equity contribution related to the capital stock. The extra debt will be capped at $90 million.

In addition, the amendment will add a covenant limiting the type of acquisitions the company and some of its subsidiaries can make.

Tekni-Plex also increased the consent payment on offer to $20.00 per $1,000 from $5.00 per $1,000.

Previously the Coppell, Texas, packaging products manufacturer wanted to amend the indenture to allow a $125 million increase in the amount of debt it can have outstanding at any time and additional flexibility in its ability to incur debt.

However Tekni-Plex extended the solicitation multiple times from its original March 25 expiry date. The solicitation was announced on March 15.

In addition to amending the terms of the solicitation, Tekni-Plex subsequently extended the expiration to 5 p.m. ET on April 19 from 5 p.m. ET on April 18.

Citigroup is the solicitation agent (800 558-3745 or call collect 212 723-6106). Bondholder Services Corp. is the information agent.

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