TriMas tenders, seeks consents for $200 million of 9¾% notes due 2017

By Susanna Moon

Chicago, Sept. 19 - TriMas Corp. said it began a cash tender offer for its $200 million of outstanding 9¾% senior secured notes due 2017.

The company also is soliciting consents to amend the notes to release all of the collateral securing the notes and eliminate or modify restrictive covenants, according to a press release.

The total purchase price for each $1,000 principal amount of notes will be 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 total payment will include a consent premium of $30.00 per $1,000 of notes tendered by 5 p.m. ET on Oct. 2, the consent date.

Holders who tender their notes after the consent date will receive the total payment less the consent payment.

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

The tender offer will expire at midnight ET on Oct. 17. Tendered notes may be withdrawn by the consent date.

The initial settlement date will be Oct. 11, with final settlement set for the first business day after the offer ends.

The company must secure consents from holders of a majority of the outstanding notes to implement the proposed amendments, except for those relating to the release of the collateral securing the notes, which require consents from holders of at least 75% of the outstanding notes.

If TriMas secures 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.

Completion of the tender offer is conditioned on securing funding for the offer and 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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