Sheridan Group extends tender offer for 10¼% notes by one more day

By Susanna Moon

Chicago, April 14 - Sheridan Group Inc. said it extended the tender offer for its $142.9 million 10¼% senior secured notes due 2011 until 9 a.m. ET on April 15.

Three weeks ago the company said it would allow until 8 a.m. ET on April 14 for holders to tender their notes and for the company to obtain funding for the purchase.

Sheridan priced $150 million of 12½% three-year senior secured notes at 94 on April 8 to yield 15.059%.

Sheridan said on Feb. 24 that the offer was related to its negotiation of a new credit facility, which would help fund the tender. The offer is conditioned on receiving proceeds from new debt financing that, when combined with up to $4.8 million of other available funds, will be enough to fund the offer.

The company said on March 15, however, that it pulled plans for a $160 million credit facility (B2/B) with Merrill Lynch as the lead bank due to market conditions.

The offer began on Feb. 24 and was originally set to end at 11:59 p.m. ET on March 23.

As of 5 p.m. ET on March 9, the consent date, the company had received tenders and consents for $136.57 million principal amount, or 95.57%, of the 10¼% notes.

That amount remains unchanged.

As previously noted, the company said it received enough consents to amend the notes and that it intended to enter into a fourth supplemental indenture, which will eliminate substantially all of the restrictive covenants, some events of default and the security interest that holders have in the company's assets.

The fourth supplemental indenture also shortens the minimum notice period for redemption of the notes to three days from 30 days.

The supplemental indenture becomes operative on the purchase date, which is expected to be April 15.

Sheridan also previously said it planned to redeem any notes remaining after the offer at par plus accrued interest up to but excluding the redemption date.

Those who tendered by the consent deadline will receive $1,003.75 per $1,000 principal amount of notes, including a consent payment of $10.00. Sheridan will also pay accrued interest.

Merrill Lynch (888 292-0070 or call collect 980 388-9217) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 873-7700 or call collect 212 430-3774) is the information agent.

Sheridan Group is a Hunt Valley, Md.-based print and publishing company.

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