Dresser-Rand gets enough consents to amend 7 3/8% notes due 2014

By Angela McDaniels

Tacoma, Wash., March 22 - Dresser-Rand Group Inc. had received tenders and consents for $291,314,000 principal amount, or 79%, of its $370 million 7 3/8% senior subordinated notes due 2014 as of 5 p.m. ET on March 21, which was the consent payment deadline in a tender offer that began March 8.

The consents received so far are enough to amend the indenture to eliminate most of the covenants, some events of default and certain other provisions.

The notes tendered by the consent payment deadline have been accepted for purchase. The settlement date was expected to be March 22.

The purchase price is $1,028 per $1,000 principal amount of notes, which includes a $30 consent payment.

Holders who tender after the consent payment deadline will receive $998 for each $1,000 principal amount of notes.

The company will pay accrued interest up to but excluding the application settlement date for all notes.

The tender offer will expire at midnight ET on April 4.

The company will use proceeds from its $375 million issue of 6½% senior subordinated notes due 2021 to fund the offer.

The dealer manager and solicitation agent is UBS Investment Bank (888 719-4210 or 203 719-4210). The information agent is Global Bondholder Services Corp. (866 540-1500 or, for banks and brokerage firms, 212 430-3774).

Houston-based Dresser-Rand supplies rotating equipment solutions to the oil, gas, petrochemical and process industries.

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