Clarke American begins tender offer for all $175 million 11¾% notes

By Jennifer Chiou

New York, April 5 - Clarke American Corp. announced the launch of a tender offer for its $175 million of 11¾% senior notes due 2013.

The company is also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and some of the default provisions.

The offer and solicitation are linked to Clarke American's previously announced merger of a wholly owned subsidiary with and into John H. Harland Co.

The consent deadline is 5 p.m. ET on April 18. The tender offer ends at 9 a.m. ET on May 3.

The company said it will determine the payout using a fixed spread of 50 basis points over the yield on the 3.5% Treasury due Dec. 15, 2009.

The payout will include a $30.00 consent payment per $1,000 in principal amount of notes for those who tender by the consent deadline.

Holders who tender must deliver consent.

The tender offer is conditioned on the receipt of the required consents as well as the completed merger. The offer is not, however, a condition of the merger.

Bear, Stearns & Co. Inc. is the dealer manager and solicitation agent (call collect 212 272-5112 or 877 696-BEAR). D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 800 628-8536).

Clarke American is a San Antonio company that provides documents and related services to financial institutions.

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