Volume Services America to redeem remaining 11¼% notes

New York, Jan. 27 - Volume Services America Holdings Inc. (B3/B-) said that its Volume Services America, Inc. subsidiary has called all of the remaining $12.25 million of outstanding 11¼% senior subordinated notes due 2009.

Volume Services, a Spartanburg, S.C.-based provider of catering and other food services to convention venues and sporting arenas, said that the notes will be redeemed on March 1 at a redemption price of 105.625% of the principal amount, plus accrued and unpaid interest up to, but not including, March 1.

The company estimates the total cash cost of the redemption at $12.939 million, plus accrued and unpaid interest.

The transaction is being funded from the proceeds of the company's recent initial public offering of Income Deposit Securities, which closed on Dec. 10.

The company originally issued $100 million of the notes, the bulk of which were repurchased late last year via a tender offer.

Wells Fargo Bank Minnesota, NA, is the paying agent for the redemption.

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