International Wire seeks consents of 9¾% noteholders to pay dividend

By Susanna Moon

Chicago, March 23 - International Wire Group, Inc. said it began a consent solicitation to amend its $116.75 million outstanding 9¾% senior secured notes due 2015 to allow issuing up to $110 million more notes and to make a one-time distribution to shareholders.

The consent payment is $30.00 in cash per $1,000 principal amount of notes tendered by 5 p.m. ET on April 1, the expiration date.

The company plans to pay stockholders and option holders up to $10.00 a share or option for a total distribution of $109.5 million. Funding for the distribution will come from proceeds of up to $110 million principal amount of senior secured notes with terms substantially identical to the terms of the 9¾% notes, according to a company press release.

The amendments require the consent of holders of at least a majority of the outstanding notes.

Holders must be of record as of 5 p.m. ET on Feb. 18.

Consents may not be revoked after the company receives enough consents to amend the notes.

Payment for the consents will be made by the third business day after closing of the notes issue.

The offer will be conditioned on receiving the needed consents as well as amending the company's revolving credit facility to permit the distribution and the closing of the proposed financing.

Wells Fargo Securities, LLC (866 309-6316) is the solicitation agent. D.F. King & Co., Inc. (800 487-4870) is the information agent.

International Wire makes wires and is based in Camden, N.Y.

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