Neenah Foundry gets tenders and consents for all of 11% notes due 2010

By Laura Lutz

Des Moines, Dec. 29 - Neenah Foundry Co. said that it had received tenders and consents for all of its $133.13 million of 11% senior secured notes due 2010 by the consent deadline in its tender offer. The company also announced pricing for the offer.

The consent deadline was 5 p.m. ET on Dec. 27. The tender ends at 5 p.m. ET on Jan. 17.

The consents allow the company to eliminate substantially all of the covenants and some events of default and will subordinated the liens securing the notes to liens securing new debt in addition to the liens to which they are already subordinated.

The company will pay $1,092.50 for each $1,000 principal amount of notes. The payout is based on the sum of the bid-side yield of the 4% Treasury due Sept. 30 and a fixed spread of 50 basis points. The payout will include a $30.00 consent payment.

The company will also pay accrued interest up to, but not including, the payment date.

Pricing was determined at 10 a.m. ET on Dec. 28.

On Nov. 7, the company terminated a previous tender offer and consent solicitation for its 11% notes because some of the conditions of the offer were not met.

Noteholders were to receive $1,098.93 per $1,000 principal amount of notes tendered, which included a cash consent payment of $30.00. Noteholders would also have received interest accrued up to the payment date.

At Oct. 24, the company had received tenders and consents for all of the notes.

When the offer was announced on Oct. 10, the conditions on the offer included the completion of a debt offering and the closing of a new revolving credit facility to fund the offer.

The new offer is conditioned upon tenders from a majority of noteholders and the consummation of a senior secured debt offering as well as the closing of a new revolving credit facility and sufficient funding.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-0652) and Banc of America Securities LLC (888 292-0070 or 704 388-9217) were dealer managers and solicitation agents for the offer. Morrow & Co., Inc. (203 658-9400 or 800 607-0088) was information agent.

Neenah Foundry is a manufacturer of iron castings and steel forgings in Neenah, Wis.

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