Wickes extends exchange for 11 5/8% notes

New York, Dec. 11- Wickes Inc. said it has extended its previously announced exchange offer for its 11 5/8% senior subordinated notes scheduled to come due on Dec. 15.

The offer was extended to 5 p.m. ET on Dec. 15, subject to possible further extension, from the previous Dec. 10 deadline.

As of the old deadline, holders had tendered $9.539 million of their notes for exchange, or about 45.2% of the outstanding principal amount of, up from the $8.971 million (42.5% of the outstanding amount) which had been tendered for exchange as of Dec. 4 when Wickes last announced an extension of the offer. Both figures include $3,549,515 principal amount of senior subordinated notes tendered by the largest noteholder, Barry Segal of Bradco Supply, representing around 16.8% of the outstanding senior subordinated notes.

As previously announced, Wickes, a Vernon Hills, Ill. distributor of building materials, said on Nov. 4 that it was offering new convertible notes or a combination of cash and convertibles for its $21.123 million principal amount of 11 5/8% notes.

The exchange was originally supposed to run through 5 p.m. ET on Dec. 3, although the deadline was subsequently extended.

The company said that for each $1,000 principal amount of the existing notes, it is offering either $500 in cash and $250 principal amount of new 10% convertible notes due June 15, 2007 or $1,000 principal amount of the new convertibles. Holders will also receive accrued interest.

The convertibles have a conversion price of $1.00 per share.

Wickes said it is making the exchange offer because it does not expect to generate sufficient cash from operations to pay the subordinated notes when they mature on Dec. 15.

Unless all the subordinated notes are tendered in the exchange, Wickes said it expects to default on its payment obligation.

The exchange is subject to at least $20,066,850 principal amount of the notes being exchanged, or 95% of the outstanding amount.

Closing is also subject to Wickes obtaining the consent of its senior lenders to the exchange and the funding of an additional term loan under the senior credit facility or the company entering into other financing arrangements under which it will borrow funds to make the cash payment in the exchange.

The information agent is D. F. King & Co., Inc. (888 869-7406) and the exchange agent is HSBC Bank USA (718 488-4475 attention: Paulette Shaw).

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