Exide begins tender offer, consent solicitation for 10½% senior notes

By Angela McDaniels

Tacoma, Wash., Jan. 10 - Exide Technologies began a tender offer and consent solicitation for its 10½% senior secured notes due 2013, according to a company news release.

The proposed amendments to the indenture governing the notes would eliminate substantially all of the restrictive covenants and some events of default and related provisions, release all collateral securing the notes and eliminate provisions relating to collateral.

Noteholders may not deliver consents without tendering their notes. Those who tender their notes will be deemed to have consented to the amendments.

The company will pay $1,014 for each $1,000 principal amount of notes. This payment includes a consent payment of $14 for each note tendered by 5 p.m. ET on Jan. 24, the consent deadline.

Noteholders will also receive accrued interest up to but excluding the payment date.

The tender offer will expire at midnight ET on Feb. 7.

The tender offer and the consent solicitation are subject to the receipt of consents by the consent deadline for at least 75% of the outstanding notes not owned by the company or its affiliates and the receipt by the company of enough financing to repurchase the notes.

The company said it plans to redeem on or after March 15 any notes that remain outstanding after the completion of the tender offer. The redemption price will be par plus accrued interest.

Deutsche Bank Securities Inc. (212 250-6429) is the dealer manager and solicitation agent. The information agent is D.F. King & Co., Inc. (212 269-5550 for banks and brokers, noteholders call 800 207-3158).

Milton, Ga.-based Exide Technologies makes and recycles lead-acid batteries.

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