Sterling Chemicals launches tender offer, consent solicitation for 10% notes

By Angela McDaniels

Seattle, March 1 - Sterling Chemicals, Inc. began a tender offer for its $100.579 million outstanding principal amount of 10% senior secured notes due December 2007, according to an 8-K report filed with the Securities and Exchange Commission on Thursday.

The tender offer will expire at midnight ET on March 28.

Sterling is also soliciting consents to amend the indenture governing the notes to eliminate some restrictive covenants and related provisions.

Noteholders who tender on or before 5 p.m. ET on March 14, the consent expiration date, must consent to the proposed amendments.

The tender consideration will be par plus accrued interest to the payment date. Noteholders who tender by the consent expiration date will also receive a consent payment of $2.50 per $1,000 principal amount of notes.

Consummation of the tender offer is conditioned upon the receipt of consents from holders of a majority of the notes and the receipt of sufficient financing.

Georgeson Inc. (212 440-9800 for banks and brokers or 866 835-1125 toll free) is the information agent.

Sterling is a Houston-based petrochemicals company.

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