Alliance One starts tender offer, consent bid for six series of notes

By Susanna Moon

Chicago, June 9 - Alliance One International, Inc. said it began a cash tender offer and consent solicitation for six series of notes.

Notes covered by the offer are Alliance One's $264,381,000 of 11% senior notes due 2012; Alliance One's $150 million of 8½% senior notes due 2012; Alliance One's $89.5 million of 12¾% senior subordinated notes due 2012; Dimon Inc.'s $3,437,000 of 9 5/8% senior notes due 2011; Dimon's $435,000 of 7¾% senior notes due 2013; and Standard Commercial Corp.'s $6,285,000 of 8% senior notes due 2012.

In 2005, Standard Commercial merged with Dimon, which changed its name to Alliance One International.

For each $1,000 principal amount, the company said it will pay $1,061.25 for its 11% notes; par for its 8½% notes; $1,071.25 for its 12¾% notes; $1,016.04 for Dimon's 9 5/8% notes; $1,030.83 for Dimon's 7¾% notes; and $1,025.00 for Standard Commercial's 8% notes.

The company also will pay accrued interest.

The total payment includes a $30.00 fee for notes tendered by 5 p.m. ET on June 22, the withdrawal date.

The tender offer is scheduled to expire at 9 a.m. ET on July 8.

Alliance One is soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants; eliminate requirements for subsidiary guarantees and requirements to conduct repurchase offers following certain events, including a change in control; modify redemption notice periods to three business days from 30 days and eliminate or modify some events of default and some conditions to defeasance.

Holders who tender must submit consents.

Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-1862) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 488-1500 or collect 212 430-3774) is the information agent.

Alliance One is a Morrisville, N.C.-based leaf tobacco merchant.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.