Sterling Chemicals executes supplemental indenture for 10% notes

By Jennifer Chiou

New York, March 16 - Sterling Chemicals, Inc. executed a supplemental indenture for its $100.579 million of 10% senior secured notes due December 2007 after receiving consents from a majority of noteholders by the early deadline of 5 p.m. ET on March 14, according to an 8-K report filed with the Securities and Exchange Commission.

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

The supplemental indenture will become operative when the company accepts the notes.

The tender offer will expire at midnight ET on March 28. It began on March 1.

The tender consideration will be par plus accrued interest to the payment date. Noteholders who tendered 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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