Sara Lee accepts all $653.32 million of tendered 6.25% notes, calls remaining 6.25% notes

By Marisa Wong

Madison, Wis., Sept. 8 - Sara Lee Corp. announced the results of the previously announced cash tender offer for any and all of its 6.25% notes due Sept. 15, 2011.

The tender offer expired at 5 p.m. ET on Sept. 7.

The total principal amount of the 6.25% notes that were validly tendered and not withdrawn prior to the expiration time was $653,321,000.

Sara Lee said it has accepted for purchase all of the tendered 6.25% notes, with settlement expected to occur on Sept. 8.

For each $1,000 principal amount of notes, holders will receive $1,058.45 plus $30.03 in accrued interest from and including the last interest payment date up to but excluding the settlement date.

Morgan Stanley & Co. Inc. was the dealer manager and D. F. King & Co., Inc. was the depositary and information agent for the tender offer.

Sara Lee also announced that it will redeem all of its outstanding 6.25% notes due 2011 on Oct. 8.

The notes will be redeemed at a redemption price in accordance with the terms of the notes. Interest will cease to accrue on and after the redemption date.

The Bank of New York Mellon Trust Co., NA is the trustee for the notes.

Sara Lee said it will fund the purchase and the redemption with proceeds from the sale of $400 million principal amount of its 2.75% notes due 2015 and $400 million principal amount of its 4.1% notes due 2020, which closed Sept. 7.

Based in Downers Grove, Ill., Sara Lee is a manufacturer and marketer of brand-name consumer products focused primarily on meats, bakery, beverage and household products.

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