Wolverine Tube plans to exchange 7 3/8% notes due 2008

By Jennifer Chiou

New York, Feb. 1 - Wolverine Tube, Inc. said it expects to conduct an exchange offer for at least $25 million of its 7 3/8% senior notes due in August 2008.

In exchange, the Huntsville, Ala., provider of copper and copper alloy tube, fabricated products and metal joining products will offer to issue $1,000 principal amount of senior notes similar to its existing 10½% senior notes due 2009, but with less restrictive covenants, in exchange for each $1,000 principal amount of 7 3/8% notes.

Wolverine Tube will also seek consents to amend the note indenture to remove substantially all of the restrictive covenants.

The proposed exchange offer is linked to the company's recapitalization plan as a result of its efforts to strengthen its balance sheet, reduce its financing costs and enhance its overall capital structure.

An investor group comprised of Plainfield Special Situations Master Fund Ltd., a fund managed by Plainfield Asset Management LLC, and The Alpine Group, Inc. will invest up to $75 million in the company through purchasing new convertible preferred equity and providing a standby commitment to a common stock rights offering, which will be available to all Wolverine shareholders.

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