Champion Enterprises obtains tenders for 91.84% of 7 5/8% notes

By Jennifer Chiou

New York, Nov. 28 - Champion Enterprises, Inc. said it received tenders from holders of $75.58 million, or 91.84%, of its $82.3 million of 7 5/8% senior notes due 2009.

The tender offer ended at midnight ET on Nov. 27.

Champion said it will pay $1,052.80 for each $1,000 principal amount of notes tendered before the consent deadline. Notes tendered after the consent deadline of 5 p.m. ET on Nov. 9 will receive the same amount, less a $30.00 consent payment.

Holders will also receive accrued interest.

At the early deadline, holders of 90.94% of the notes had tendered.

The payout was based on the present value of the notes on the applicable payment date, minus accrued interest, discounted using the yield on the 3 7/8% Treasury due May 15, 2009 and a fixed spread of 50 basis points. Pricing was set at 10 a.m. ET on Nov. 9.

The Auburn Hills, Mich., maker of factory-built housing was soliciting consents to amend the indenture to eliminate or make less restrictive substantially all of the restrictive covenants.

The offer was contingent on sufficient proceeds from the issue of new notes for the offer, tenders from holders of a majority of notes and the execution of a supplemental indenture.

Credit Suisse Securities (USA) LLC (call collect 212 325-4951) was the dealer manager. D.F. King & Co., Inc. (999 887-0082 or call collect 212 269-5550) was the information agent and tender agent.

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