Doane Pet Care to tender for 10¾% notes, 10 5/8% notes in connection with Mars acquisition

By Angela McDaniels

Seattle, April 26 - Doane Pet Care Co. will hold a tender offer for its $213 million 10¾% senior notes due 2010 and $213 million 10 5/8% senior subordinated notes due 2015 and solicit consents to amend the indenture governing the notes, according to a company news release.

The total consideration for the 10¾% notes will be based on the present value of the required payments to, and redemption premium payable as of, March 1, 2007, discounted using the yield of the 3 3/8% U.S. Treasury note due Feb. 28, 2007 plus 50 basis points.

The total consideration for the 10 3/8% notes will be based on the present value of the required payments to, and redemption premium payable as of, Nov. 15, 2010, discounted using the yield of the 4½% U.S. Treasury note due Nov. 15, 2010 plus 50 bps.

The tender offer is being made in connection with Mars Inc.'s agreement to acquire Doane's parent, Doane Pet Care Enterprises Inc., from Teachers' Private Capital. The acquisition by Mars will not include Doane's European business, which is being sold to a third party.

Closing of the transaction is subject to receipt of required regulatory approvals and is expected to be completed within the next several months, according to the release.

Doane president and chief executive officer Doug Cahill will manage the newly combined Mars North American Pet business in Nashville, Tenn.

Doane is a dry pet food manufacturer based in Nashville, Tenn.

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