Ainsworth Lumber gets needed consents to amend 11% notes due 2015

By Susanna Moon

Chicago, Nov. 27 - Ainsworth Lumber Co. Ltd. said investors tendered $355.3 million of its $408,208,105 of 11% senior notes due 2015 by 5 p.m. ET on Nov. 26, the consent expiration.

Ainsworth received the needed consents to amend the notes and has executed a supplemental indenture, according to a company press release.

The company also will redeem the remaining notes at par plus accrued interest to Dec. 27, the redemption date.

As noted before, the purchase price will be $1,002.50 per $1,000 principal amount, which includes a $30.00 consent payment for notes tendered by the consent date.

The company will also pay accrued interest from the last interest payment date up to but not including the settlement date of Nov. 27 for notes tendered by the consent expiration and Dec. 11 for notes tendered after that.

Holders may not tender their notes without delivering consents or vice versa.

The offer expires at 11:59 p.m. on Dec. 10.

As noted at the beginning of the offer on Nov. 9, the company is seeking consents from noteholders to eliminate substantially all of the restrictive covenants and some event-of-default provisions in the indenture governing the notes.

The offer is subject to receipt of the needed consents and a financing condition. Ainsworth Lumber priced $350 million of five-year senior secured notes at par to yield 7½% on Nov. 14 and completed a C$175 million rights offer to fund the tender offer and repay Ainsworth's outstanding senior secured term loan due June 2014.

Global Bondholder Services Corp. (866 488-1500 or collect 212 430-3774) is the depositary and information agent. Bank of America Merrill Lynch (888 292-0070 or collect 980 387-3907) is the dealer manager and solicitation agent.

Ainsworth is a Vancouver, B.C.-based manufacturer of engineered wood products.

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