Hillenbrand tenders for 4½% notes due 2009

By Laura Lutz

Des Moines, Feb. 29 - Hillenbrand Industries, Inc. launched a tender offer for all of its 4½% senior notes due 2009.

As of Feb. 29, there was $250 million principal amount of the notes outstanding.

The offer is scheduled to expire on March 31. The consent deadline is 5 p.m. ET on March 13.

For each $1,000 principal amount of notes tendered by the consent deadline, Hillenbrand said the payout at maturity will be based on a the yield based on the bid-side price the 2% U.S. Treasury due Feb. 28, 2010 plus 75 basis points. Pricing will be set at 2 p.m. ET on March 26.

Notes tendered after the consent deadline will receive the same amount, less a consent payment of $20.00 for each $1,000 principal amount.

Tendering noteholders will also receive accrued interest through the settlement date, which is expected to be no later than April 1.

Tenders may not be withdrawn after the consent deadline.

Batesville, Ind.-based Hillenbrand is conducting the offer in connection with a planned separation of its two primary operating companies: Hill-Rom, its medical technology business, and Batesville Casket, its funeral service business.

Settlement of the tender offer is conditioned on the completion of the separation, but the separation does not depend on the tender offer.

Citi (800 55803745 or 212 723-6106) and Goldman, Sachs & Co. (877 686-5059 and 212 902-9077) are the dealer managers. Global Bondholder Services Corp. (866 952-2200 or 212 430-3774) is the information agent.

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