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KLX gains consents to amend 5 7/8% notes after raising fee
New York, June 8 – KLX Inc. said it has received the necessary consents to amend its $1.2 billion of 5 7/8% senior notes due 2022.
Payment of the $4.5 million total consent fee is planned for June 11, according to a news release.
A supplemental indenture was executed and became effective on Friday.
As announced May 30, the solicitation is being carried out in order to allow the planned spinoff to the company’s shareholders of KLX Energy Services Holdings, Inc. before the remainder of KLX Inc., its aerospace services group, is acquired by Boeing Co. Under the second part, KLX will merge with Boeing subsidiary Kelly Merger Sub, Inc., with KLX as the surviving entity.
KLX previously said it plans to carry out the spinoff first, then redeem the notes concurrently with the merger with Kelly.
If the consents are not received or if KLX delays the spinoff for any reason, the spinoff will be carried out simultaneously with the completion of the merger with Kelly and the notes will be redeemed.
Approval was needed from holders of a majority of the notes.
The company was originally offering a consent payment of $1.25 per $1,000 principal amount and then raised the payment to an aggregate amount of $3 million on June 4 before finally lifting it to $4.5 million total on June 5.
In connection with the last increase, the deadline was extended until 5 p.m. ET on June 8 from 5 p.m. ET on June 5.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are solicitation agents. Ipreo LLC (212 849-3880 or 888 593-9546) is information and tabulation agent.
KLX is a Wellington, Fla., distributor of aerospace fasteners and consumables, and provider of services and products to oil and gas exploration and production companies.
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