Durango extends tender for series B step-up notes

New York, July 19 - Corporacion Durango SAB de CV extended its tender offer for its series B step-up rate senior secured guaranteed notes due 2012.

The offer now ends at 5 p.m. on July 26 instead of midnight ET on July 19.

As of 5 p.m. ET on July 19, holders had tendered $364,671,818 of the notes, or 86.9%. Of those, $359,730,986, or 85.7% of the total outstanding, were tendered by the early participation date.

As previously announced, 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.

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 needed 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. Shareholder approval has now been obtained and the supplemental indenture has been executed.

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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