Stone Energy to redeem 8¾% notes

New York, Aug. 27 - Stone Energy Corp. (B2/BB) said that it will redeem its $100 million of outstanding 8¾% senior subordinated notes due 2007 on Sept. 30.

Stone Energy, a Lafayette, La.-based independent oil and gas company, said that the notes will be redeemed at a price of 102.917% of the principal amount.

Stone expects to finance the redemption with cash on hand and borrowings available under its bank credit facility.

The transaction is expected to result in a third quarter charge against earnings for the early extinguishment of debt of approximately $3 million, net of taxes.

Alliance Gaming obtains consents for 10% note amendments

New York, Aug. 27 - Alliance Gaming Corp. (B3/BB-) said that the consent deadline of its previously announced tender offer and consent solicitation for its 10% senior subordinated notes due 2007 expired as scheduled at 5 p.m. ET on Aug. 26 without extension.

The company said that as of that deadline, holders of $77.765 million aggregate principal amount of the 10% notes had tendered their notes and had delivered valid consents to the proposed indenture amendments. This amount represents approximately 51.8% of the total amount of notes issued and outstanding, which is sufficient to approve the proposed amendments.

Alliance said that it expects that a supplemental indenture implementing the approved amendments would be executed and become effective Wednesday.

As previously announced, Alliance Gaming, a Las Vegas-based maker of advanced gaming devices and systems, said on Aug. 13 that it had begun a cash tender offer and consent solicitation for its $150 million of outstanding 10% notes.

It set a now-expired consent deadline of 5 p.m. ET on Aug. 26 and an expiration deadline of midnight ET on Sept. 10, both subject to possible extension.

The company said it was offering $1,035.83 per $1,000 principal amount for notes tendered by the consent, deadline, including a $20 per $1,000 principal amount consent payment.

Holders tendering after that date but before the tender expires will receive $1,015.83 per $1,000 principal amount.

In both cases holders will receive accrued interest up to but excluding the purchase date.

Under the consent solicitation, Alliance Gaming is soliciting approval for amendments to the note indenture that would, among other things, eliminate substantially all of the restrictive covenants.

The company said the offer would be subject to various conditions, including its ability to put in place a new $375 million credit facility to refinance its existing indebtedness.

CIBC World Markets Corp. (contact: Brian Perman, 212 885-4489) is the dealer manager for the tender offer and consent solicitation and Innisfree M&A Inc. (888 750-5834) is the information agent.

Ocwen calls 12% debentures

New York, Aug. 27 - Ocwen Financial Corp. said its Ocwen Federal Bank FSB subsidiary will redeem its 12% subordinated debentures due 2005 on Sept. 30.

The West Palm Beach, Fla. financial services company will pay 101.333% of par in the redemption.

Ocwen currently has $33.065 million of the securities outstanding.

The company said the redemption will reduce interest expense by $4.0 million over the next 12 months and result in cost savings of $3.2 million.

Toll Bros. to retire 7¾% notes with new-issue proceeds

New York, Aug. 27 - Toll Brothers Inc. said that it plans to retire all of its existing $100 million of Toll Corp. 7¾% senior subordinated notes due 2007 (Ba2), using a portion of the proceeds of its new private placement of 10-year senior notes.

The Huntington Valley, Pa.-based homebuilder's Toll Brothers Finance Corp. subsidiary was heard by market sources to have sold $250 million of new Baa3/BBB- rated 5.95% senior notes due 2013 via sole lead manager Citigroup on Tuesday (Aug. 26). The private placement is expected to close in early September.

Besides retirement of the 7¾% notes, the balance of the proceeds from the new issue will be used for general corporate purposes, including working capital requirements.

Varsity Brands extends deadlines for 10½% notes

New York, Aug. 27 - Varsity Brands, Inc. (B2/B-) said it was extending the consent deadline under its previously announced tender offer for its 10½% senior notes due 2007 to 5 p.m. ET on Aug. 27, subject to possible further extension, from the original Aug. 26 deadline.

It also extended the tender offer expiration deadline to 12 midnight ET on Sept. 12, subject to possible further extension, from the originally announced time of 5 p.m. ET on Sept. 12.

All other original terms and conditions of the tender offer and consent solicitation are unchanged. Holders who had previously tendered their securities under the offer do not need to take any further action as a result of this extension.

As previously announced, Varsity Brands, a Memphis, Tenn.-based cheerleading products company, said on Aug. 13 that was starting a cash tender offer for all of its outstanding 10½% notes (Standard & Poor's said there were $115 million of the notes currently outstanding).

The company initially set a consent deadline of 5 p.m. ET on Aug. 26 and an expiration date of 5 p.m. ET on Sept. 12 (the deadlines were subsequently extended).

It offered to pay $1,037.50 per $1,000 principal amount of notes tendered, which would include a consent fee of 0.25% of the principal amount for holders who tender by the consent deadline.

Varsity Brands also said it was seeking consents to certain proposed amendments to the notes' indenture.

The company said the tender offer was being carried out in conjunction with the planned leveraged buyout of Varsity by a wholly-owned subsidiary of an affiliate of Leonard Green & Partners, LP, together with members of the company's senior management. Completion of the tender offer is conditioned upon, among other things, the consummation of the merger between Varsity Brands and VB Merger Corp., which was formed by Leonard Green & Partners for the purpose of acquiring majority ownership of Varsity.

Jefferies & Co., Inc. (800 933-6656) is dealer manager and information agent for the tender offer. The depositary is HSBC Bank USA.

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