American Commercial solicits tenders, consents for 9 ½% notes due 2015

By Laura Lutz

Des Moines, Jan. 17 - American Commercial Lines Inc. launched a tender offer and consent solicitation for all of its $119.5 million outstanding principal amount of 9½% senior notes due 2015.

The company is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants, several affirmative covenants and some events of default.

The proposed amendments would also modify the covenants regarding mergers, consolidations and transfers of the company's properties and assets.

The deadline for soliciting consents is 5 p.m. ET on Jan. 30. The tender offer will expire at 5 p.m. ET on Feb. 14.

For each $1,000 principal amount of notes, the company will pay the present value on the initial settlement date of the $1,047.50 payable on the first call date on Feb. 15, 2010 plus the present value on the initial settlement date of interest that would accrue through the first call date.

The present value will be calculated based on the sum of the yield to maturity on the 3½% U.S. Treasury due Feb. 15, 2010 as of 2 p.m. ET on Jan. 30 plus 50 basis points.

The payout includes a consent payment of $30 for each $1,000 principal amount of notes tendered before the consent deadline.

Global Bondholder Services Corp. is the information agent (866 794-2200), and Merrill Lynch & Co. is the dealer manager (888 654-8637).

American Commercial is a marine transportation and service company based in Jeffersonville, Ind.

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