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Prospect News home > News index > List of issuers W > Headlines for WCI Communities, Inc. > News item |
WCI Communities accepts tenders for $292.2 million 10 5/8% notes
By Jennifer Chiou
New York, Jan. 3 - WCI Communities, Inc. said it accepted $292.185 million or about 98% of its $298 million of 10 5/8% senior subordinated notes due 2011 in its tender offer.
The tender ended at 11:59 p.m. ET on Dec. 30.
Noteholders who tendered their securities before 5 p.m. ET on Dec. 22 will receive $1,061.72 per $1,000 principal amount, including the consent payment of $30.00 per $1,000.
Previously, only holders who tendered before the consent deadline of 5 p.m. ET on Dec. 15 would have been paid the consent payment.
WCI announced the tender on Dec. 2, saying that the price per $1,000 principal amount of the notes would be fixed at 2 p.m. ET on Dec. 15 using the present value on the early payment date of $1,053.13 plus all future interest payments through Feb. 15, 2006 minus accrued interest up to but excluding the early payment date. The present value was determined using the bid-side yield to maturity of the 5 5/8% U.S. Treasury note due Feb. 15, 2006 plus 50 basis points.
WCI is soliciting consents to eliminate substantially all of the restrictive covenants and certain events of default and related provisions in the note indenture.
The company said it used the proceeds of a new $300 million term loan to fund the offer.
The tender was conditioned upon the new term loan, the receipt of consents from holders of a majority of the notes not owned by the company or its affiliates and other customary conditions.
WCI is a Bonita Springs, Fla., builder of traditional and tower residences in lifestyle communities.
Wachovia Securities is dealer manager (call collect 704 715-8341 or 866 309-6316). Georgeson Shareholder Communications Inc. is information agent (call collect 212 440-9800 or 866 729-6814).
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