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Prospect News home > News index > List of issuers T > Headlines for Tenders 2007 > News item |
Corporacion Durango gets tenders for 86% of series B step-up rate notes
By Jennifer Chiou
New York, July 9 - Corporacion Durango SAB de CV obtained tenders from holder of 86% of its series B step-up rate senior secured guaranteed notes due 2012, according to a market source.
The Durango, Mexico, paper company is also soliciting consents to amend the note indenture and the common agreement to eliminate certain covenants and related events of default.
The offer ends at midnight ET on July 19.
Durango said it will pay 103.125% for the notes, including a 3.125% early participation payment for those who tendered by the early deadline of 5 p.m. ET on July 5.
Those who tender will also receive accrued interest to the settlement date.
The company is seeking consents from holders of a majority of notes.
The offer is conditioned upon the execution of a supplemental indenture, tenders from holders of a majority of notes and the receipt of at least $520 million of proceeds from a note issue as well as shareholder approval.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the dealer manager (attn: Liability Management Group at 888 654-8637 or call collect 212 449-4914). Global Bondholder Services Corp. is the information agent (866 794-2200 or call collect 212 430-3774).
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