Brown Shoe to redeem $50.78 million 8¾% senior notes due 2012

By Melissa Kory

Cleveland, May 12 - Brown Shoe Co., Inc. said that it will redeem its $50,782,000 of 8¾% senior notes due May 1, 2012.

The notes will be redeemed on June 10 at par plus accrued interest to the redemption date.

U.S. Bank, NA is the redemption agent.

The company settled early tenders on May 11 for $99,218,000, or 66.15%, of its $150 million of 8¾% notes. The company used some of the proceeds from its placement of $200 million of 7⅛% senior notes due 2019 to fund the tender.

The tender offer will continue until 8 a.m. ET on May 25.

The company paid $1,003.75 per $1,000 principal amount of notes tendered by the consent deadline at 5 p.m. ET on May 10, which included a consent fee of $10.00 per $1,000 principal amount.

As already reported, Brown Shoe is also soliciting consents to amend the notes to eliminate most of the restrictive covenants and some events of default. Consents are needed from the holders of a majority of the notes.

Holders who tender after the consent date but by the offer expiration will receive the total payment less the consent fee.

The company also will pay accrued interest up to but excluding the payment date.

Brown Shoe is a St. Louis-based footwear retailer and wholesaler.

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