Texas Industries tenders for 10¼% notes

New York, June 13 - Texas Industries, Inc. said it has begun a tender offer and consent solicitation for its $600 million of 10¼% senior notes due 2011.

The consent solicitation ends at 5 p.m. ET on June 24 while the tender expires at midnight ET on July 14.

Pricing for each $1,000 principal amount of notes tendered by the consent deadline will be based on 50 basis points over the yield of the 3½% U.S. Treasury note due May 31, 2007. The level will be fixed at 2 p.m. ET on a date to be selected by the company to be at least 10 business days before the expiration.

Holders will also receive accrued interest up to but excluding the initial payment date, expected to be July 6.

The Dallas-based building materials supplier is also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

The calculated total payment includes a $30.00 per $1,000 principal amount consent payment.

Holders who tender must deliver consents and vice versa.

The offer is subject to conditions including the receipt of consents from holders of a majority of the notes, completion of new debt financings to fund the tender and other conditions.

To pay for the offer, Texas Industries plans to issue new senior notes due 2013, receive a payment from its Chaparral Steel Co. subsidiary and use existing cash. Chaparral is also proposing debt financing.

Banc of America Securities LLC is dealer manager and solicitation agent (contact High Yield Special Products at 888 292-0070 or call collect 704 388-9217). D. F. King & Co., Inc. is information agent (800 659-5550, bankers and brokers call 212 269-5550).

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