DRS investors tenders $1.11 billion 6 7/8%, 6 5/8%, 7 5/8% notes

By Susanna Moon

Chicago, Jan. 20 - DRS Technologies, Inc. said holders tendered $530,279,000 principal amount, or 96.41%, of its 6 7/8% senior subordinated notes due 2013, $337,914,150 principal amount, or 96.55%, of its 6 5/8% senior notes due 2016 and $244,942,000 principal amount, or 97.98%, of its 7 5/8% senior subordinated notes due 2018.

The offers expired at 5 p.m. ET on Jan. 14.

The company began the change-of-control tender offers for the notes on Nov. 25 in connection with the acquisition of the company by Finmeccanica SpA.

On Nov. 13, Finmeccanica said it would guarantee DRS' payment obligations under the notes. DRS sought to amend the note indentures in connection with these guarantees.

The company will pay $1,010 for each $1,000 principal amount of notes tendered. Holders will also receive accrued interest to Jan. 19 for the 6 5/8% notes and to Jan. 20 for the 6 7/8% and 7 5/8% notes.

DRS said on Dec. 22 that it received the required consents to allow the company to amend the note indentures to modify the reporting covenant, allowing it to forgo filing reports with the Securities and Exchange Commission and instead providing holders with consolidated annual and interim financial reports.

A consent solicitation for the notes began on Dec. 5 and ended at 5 p.m. ET on Dec. 19. Holders who consented will receive a consent fee of $1.00 per $1,000 principal amount.

The information and tabulation agent is Global Bondholder Services Corp. (866 540-1500 or call collect at 212 430-3774). Merrill Lynch & Co. (888 654-8637 or call collect 212 449-4914) is the solicitation agent.

DRS Technologies is a Parsippany, N.J., supplier of products and services to the military, government agencies and prime contractors.

Based in Rome, Finmeccanica designs and manufactures helicopters, civil and military aircraft, aero structures, satellites, space infrastructure, missiles and defense electronics and security.

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