Durango again extends tender offer for series B step-up notes

By Angela McDaniels

Seattle, Aug. 10 - Corporacion Durango SAB de CV again 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. ET on Aug. 17 instead of 5 p.m. ET on Aug. 3. It was previously extended from July 26 and from July 19.

As of 5 p.m. ET on Aug. 10, holders had tendered $370,493,003 of the notes, or 88.3%. Of those, $359,730,986, or 85.7% of the total outstanding, were tendered by the early participation date. The response was up from $367,568,212 of the notes, or 87.6%, on July 26 and $364,671,818, or 86.9%, on July 19.

As previously announced, the Durango, Mexico, paper company is also soliciting consents to amend the note indenture and the common agreement to eliminate some 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 the notes.

Now that the consents and shareholder approval have been obtained and the supplemental indenture has been executed, the offer remains conditioned upon the receipt of at least $520 million of proceeds from a note issue.

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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