Michaels begins tender offer, consent solicitation for 10% notes

By Angela McDaniels

Tacoma, Wash., Oct. 6 - Michaels Stores, Inc. has begun a tender offer for its $750 million principal amount of 10% senior notes due 2014, according to a company news release.

The company is also soliciting consents to some proposed amendments to the indenture governing the notes that would eliminate substantially all of the restrictive covenants and some events of default.

The tender offer will expire at 12:01 a.m. ET on Nov. 4.

The payment per $1,000 principal amount of notes is $1,052.50, which includes a consent payment of $30.00 for each note tendered by 5 p.m. ET on Oct. 20.

Holders will also receive accrued interest up to but excluding the settlement date.

The company said it plans to redeem any notes that remain outstanding after the expiration of the tender offer.

The tender offer is contingent on the receipt by the company of at least $750 million of proceeds from a capital-markets transaction and the receipt of enough consents to amend the indenture.

The dealer manager and solicitation agent is Deutsche Bank Securities Inc. (212 250-6429). The information agent is D.F. King & Co., Inc. (800 269-6427 or 212 269-5550).

Michaels Stores is an Irving, Texas-based specialty retailer of arts, crafts, framing, floral, home decor and seasonal merchandise.

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