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ScottsMiracle-Gro gets tenders for 99.8% of 6 5/8% notes at early deadline
By Jennifer Chiou
New York, Jan. 24 - The Scotts Miracle-Gro Co. announced the receipt of tenders from holders of $199.5 million or 99.8% of its $200 million of 6 5/8% senior subordinated notes at the early deadline.
The company is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and some events of default. Scotts added that a supplemental indenture has been executed.
For each $1,000 principal amount of notes, the company said it will pay the present value of $1,033.13, the redemption price for the notes on Nov. 15, 2008 - the earliest redemption date - discounted using the 4 3/8% Treasury due Nov. 15, 2008 and 50 basis points.
Those who tendered by the consent deadline of 5 p.m. ET on Jan. 24 will receive the $30.00 consent payment, which is included in the payout.
Pricing will be determined at 2 p.m. ET on Jan. 26.
The offer ends at 5 p.m. ET on Feb. 8. It began on Jan. 10.
The offer is conditioned on the company receiving tenders from a majority of noteholders as well as Scotts securing loan facilities totaling up to $2.1 billion.
As already announced on Dec. 12, the tender is part of efforts to make its financial structure more efficient.
The company previously said it also plans to start a Dutch auction tender offer to repurchase up to $250 million of its shares in January.
The Marysville, Ohio, lawn and garden care company said it expects the recapitalization to be complete by March 31.
D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 800 714-3312). Banc of America Securities LLC is the dealer manager and solicitation agent (888 292-0070 or call collect 704 388-9217).
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