Volume Services America tenders for 11¼% notes

New York, Oct. 23 - Volume Services America, Inc. (B3/B-) said that it has begun a cash tender offer for all of the $100 million outstanding principal amount of its 11¼% senior subordinated notes due 2009 as well as a related solicitation of noteholder consents to proposed indenture changes.

The company set 5 p.m. ET on Nov. 6 as the early consent deadline and said the tender offer would expire at midnight ET on Nov. 21, with both deadlines subject to possible extension.

Volume Services America, a Spartanburg, S.C.-based provider of catering, concessions, merchandise and facilities management services for sports facilities, convention centers and other entertainment venues, said that it will pay tendering noteholders $1,062.79 per $1,000 principal amount of notes validly tendered and accepted for purchase, plus accrued and unpaid interest up to, but not including, the payment date.

In addition, noteholders who tender their notes and provide consents to the proposed amendments by the early consent deadline will receive an early consent premium of $20 per $1,000 principal amount.

Volume Services said that the tender offer would be subject to several conditions, including receipt by the company of valid and unrevoked consents from the holders of a majority in principal amount of the notes by the expiration deadline, and the consummation of an offering of Income Deposit Securities by Volume Services' parent company, Volume Services America Holdings, Inc.; the net proceeds of the Income Deposit Securities offer will be used to fund the tender for the 11¼% notes among other things.

The dealer manager for the tender offer is CIBC World Markets Corp. (contact Brian Perman at 212 885-4489). The information agent is Innisfree M&A Inc. (investors call toll-free at 888 750-5834, banks and brokerage firms call 212 750-5833).

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