Icahn adds supplement to offer, solicitation for 7 1/8%, 8 1/8% notes

By Jennifer Chiou

New York, Jan. 5 - Icahn Enterprises LP and Icahn Enterprises Finance Corp. announced a supplement to the cash tender offers for the $967 million of their 7 1/8% senior notes due 2013 and $353 million of their 8 1/8% senior notes due 2012.

Icahn Enterprises also is soliciting consents to amend the notes to eliminate most of the restrictive covenants and to amend other provisions.

The company is now also seeking consents to eliminate the covenants in the indentures related to the incurrence of debt and issuance of preferred stock.

Holders who consent to the proposed amendments will be obligated to tender their notes.

For each $1,000 principal amount, the company will pay par plus a consent fee for notes tendered by 5 p.m. ET on Jan. 7. The consent fee is $22.81 for the 7 1/8% notes and $20.94 for the 8 1/8% notes.

The tender offers will expire at midnight ET on Jan. 28. It began on Dec. 30.

D.F. King & Co., Inc. (800 488-8035 or for banks and brokers only 212 269-5550) is the information agent. Jefferies & Co., Inc. (888 708-5831) is dealer manager for the tender offers and the solicitation agent.

Icahn Enterprises previously said the audit committee of the board of directors of the general partner approved the redemption of all outstanding preferred units on March 31 under the terms of its partnership agreement at a redemption price equal to the liquidation preference of the preferred units plus accrued distributions, or a total of about $138 million.

The partnership agreement provides that the redemption price may be paid in cash or in depositary units. The preferred units will be redeemed by the issuance of additional depositary units, which will be valued at the average price at which the depositary units are trading over the 20-day period immediately preceding the redemption date.

Icahn is a diversified holding company based in New York.

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