TriMas sets price it will pay for 9¾% notes due 2017 in tender offer

By Angela McDaniels

Tacoma, Wash., Oct. 2 - TriMas Corp. priced the tender offer for its $200 million of 9¾% senior secured notes due 2017, according to a company news release.

Holders will receive $1,154.14 per $1,000 principal amount of notes. This includes a consent premium of $30.00 for each note tendered by 5 p.m. ET on Oct. 2, the consent date.

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

The purchase price was set using a fixed spread of 50 basis points over the bid-side yield of the 0.75% U.S. Treasury note due Dec. 15, 2013 at 2 p.m. ET on Oct. 2. The tender offer yield is 0.712%.

The tender offer began on Sept. 19 and will expire at midnight ET on Oct. 17.

The company is also soliciting consents to amend the notes to release all of the collateral securing the notes and to eliminate or modify some restrictive covenants and other provisions.

The company needs consents from holders of a majority of the outstanding notes in order to implement the proposed amendments and consents from holders of at least 75% of the outstanding notes in order to release the collateral.

If TriMas receives enough consents to execute a supplemental indenture, the proposed amendments will become effective when the company purchases all the notes tendered by the consent date.

The settlement date for notes tendered by the consent date is expected to be Oct. 11.

The completion of the tender offer is subject to the condition that the company has completed the execution and effectiveness of an amended and restated credit facility and borrowed the funds necessary to complete the tender offer under that facility. It is also conditioned on the execution of a supplemental indenture.

On Sept. 19, Prospect News reported that TriMas launched its $250 million seven-year term loan B with talk of Libor plus 300 basis points.

Wells Fargo Securities, LLC (866 309-6316 or collect 704 715-8341) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 758-5880 or banks and brokers call 212 269-5550) is the information agent and tender agent.

TriMas is a Bloomfield Hills, Mich., company that provides applied and engineered products.

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