Unifi cancels plans for $140 million debt deal and notes tender offer

By Sara Rosenberg

New York, Jan. 11 - Unifi Inc. has cancelled its plans for $140 million of debt financing and, as a result, has terminated the tender offer for its 11½% senior secured notes due 2014, according to a news release.

"The company has reviewed current conditions in the debt capital markets and determined that the savings generated from such financing would not be sufficient to offset the costs of such transaction. The company therefore has decided against proceeding with the debt financing," the release said.

Unifi also announced on Tuesday that it is calling for redemption of $30 million of its 11½% notes at a price of 105.75% of the principal amount plus accrued interest.

The redemption will take place on Feb. 16. Following its completion, the principal amount of the notes that will remain outstanding is $133.7 million.

Unifi is a Greensboro, N.C.-based producer and processor of multi-filament polyester and nylon textured yarns and related raw materials.

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