Correction: Swift tender is for $505.648 million 12½% notes due 2017

By Devika Patel

Knoxville, Tenn., Nov. 30 - Prospect News incorrectly reported the amount that Swift Corp. subsidiary Swift Transportation Co., LLC has outstanding of 12½% second-priority senior secured fixed rate notes due 2017. The company actually has $505.648 million of the notes remaining.

In a Nov. 19 story, the company said it launched an offer to purchase the notes for cash. The company also will purchase $203.6 million in second-priority senior secured floating rate notes due 2015 for cash as well.

Swift is also soliciting consents to amend the notes' indentures to eliminate most restrictive covenants and default events and release the collateral underlying both series of notes. The company needs consents from 66 2/3% of the investors to institute these changes. Holders who tender must also deliver their consents and those who give their consents will also be required to tender their notes.

Apollo Fund VI BC, LP and Lily, LP, the holders of the largest amount of notes, have already consented to the proposed amendments. As of Nov. 19, Apollo owns about 38.8% of the floaters and 67.7% of the 12½% notes.

Investors who deliver consents by the consent deadline, 5 p.m. ET on Dec. 3, will receive par for the floaters and $1,085 per $1,000 of the 12½% notes. These amounts include a $30 consent payment per $1,000 of either series of notes for those who deliver their consents by the consent.

Those who tender after the consent deadline but before the expiration date of the tender offers, which is midnight ET on Dec. 17, will be entitled to receive $970 per $1,000 of the floaters and $1,055 per $1,000 of 12½% notes.

The company will also pay interest up to, but not including, the payment date on both series of notes.

The offer is conditioned upon the company getting tenders and consents from 66 2/3% of the notes and Swift Holdings Corp. completing an initial public offering, as well as upon Swift entering a new senior secured credit facility and offering new senior secured second-lien notes.

Morgan Stanley (800 624-1808 or 212 761-5384), Bank of America Merrill Lynch (888 292-0070 or 980 388-9217) and Wells Fargo Securities (866 309-6316 or 704 715-8341) are the dealer managers and solicitation agents for the offers. D.F. King & Co. (888 628-8208 or 212 269-5550) is the depositary and information agent.

The private truckload carrier is based in Phoenix.

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