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Remington Arms begins consent solicitation for 10½% notes
By Angela McDaniels
Seattle, May 1 - Remington Arms Co., Inc. began a consent solicitation for its $200 million 10½% senior notes due 2011 on Tuesday, according to a company news release.
The proposed amendments would allow a subsidiary of Cerberus Capital Management, LP to acquire RACI Holding, Inc., the sole stockholder of Remington Arms, without having to make an offer to repurchase the notes under the change-of-control provision.
The amendments would also change the definition of "sponsors" in the note indenture to allow Cerberus to take the place of the existing sponsors and thus allow Remington Arms to make certain payments and distributions to Cerberus and its affiliates under the indenture, according to the release.
Noteholders who consent by the early consent deadline will receive a consent fee of $5.00 for each $1,000 principal amount of notes held and noteholders who consent by the final consent deadline will receive $2.50 per $1,000 principal amount.
The early consent deadline is 5 p.m. ET on May 14, and the final consent deadline is 5 p.m. ET on May 21.
Payment of the consent fee is conditioned on the receipt of consents from holders of at least a majority of the outstanding notes, excluding notes owned by the company or its affiliates, on the execution and delivery of a supplemental indenture and on the closing of the acquisition of RACI by Cerberus.
Credit Suisse Securities (USA) LLC is the solicitation agent, and D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 800 431-9633 toll free) is the information agent.
Remington is a Madison, N.C., manufacturer of firearms and ammunition.
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