Icahn purchases $1.28 billion 7 1/8%, 8 1/8% notes with issue proceeds

By Susanna Moon

Chicago, Jan. 15 - Icahn Enterprises LP and Icahn Enterprises Finance Corp. used proceeds from a $2 billion notes offering to purchase $1.28 billion of their 7 1/8% senior notes due 2013 and 8 1/8% senior notes due 2012 tendered so far.

The tender offers for the notes will expire at midnight ET on Jan. 28. They began on Dec. 30.

Icahn Enterprises announced on Jan. 8 the receipt of consents needed to amend the $967 million of 7 1/8% notes and $353 million of 8 1/8% notes.

Icahn Enterprises was soliciting consents to amend the notes to eliminate most of the restrictive covenants, to eliminate the covenants related to the incurrence of debt and issuance of preferred stock and to amend other provisions, and it received tenders from holders of $938.7 million, or about 97%, of the 7 1/8% notes and $344.8 million, or about 98%, of the 8 1/8% notes by 5 p.m. ET on Jan. 7.

The company executed supplemental indentures.

Holders who consented to the proposed amendments were obligated to tender their notes.

For each $1,000 principal amount, the purchase price is par plus a consent fee for notes tendered by the early deadline. The consent fee is $22.81 for the 7 1/8% notes and $20.94 for the 8 1/8% notes.

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

© 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.