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Timco Aviation sweetens early conversion offer for 8% senior, junior PIK notes
New York, Sept. 20 - Timco Aviation Services, Inc. announced it has improved its early conversion offer for its 8% senior subordinated convertible PIK notes due 2006 and 8% junior subordinated convertible PIK notes due 2007.
Holders will now receive a premium of 15% payable in stock for converting early.
Previously Timco was offering the number of shares investors would have received at maturity and the opportunity to participate in the company's already announced rights offering.
The deadline for the exchange offer and accompanying consent solicitation is now 5 p.m. ET on Oct. 6 instead of 5 p.m. ET on Sept. 20.
Under the revised terms, holders of 90% of the notes, including 91% of the senior notes and 18% of the junior notes, have tendered or agreed to tender, Timco said.
Specifically under the revised terms, Timco will exchange the senior notes for the 2,080 shares that would be issued on automatic conversion at maturity plus a premium of 312 shares and the junior notes for 2,056 shares plus a premium of 294 shares.
The Greensboro, N.C., company announced the exchange on Aug. 17 and said it was also soliciting consents for proposed amendments to remove all material covenants from the indenture governing the senior notes.
As originally announced, in the rights offering, which will immediately follow the completion of the conversion offer, stockholders will receive the right to purchase additional shares of Timco's post-reverse split common stock. A post-reverse split share is made up of 40 pre-reverse split shares.
Stockholders will obtain 1.25 rights for each post-reverse split share of Timco stock. Each right allows investors to purchase the post-reverse split stock at $4.80 per share, or $0.12 per pre-reverse split share.
Timco provides aviation maintenance, repair and overhaul services.
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