Barneys tenders for 9% notes

New York, Nov. 17 - Barney's Inc. announced it is tendering for its 9% senior secured notes due 2008 and soliciting consents to amend the related indenture and security agreements.

The subsidiary of New York-based luxury retailer Barneys New York Inc. said it is making the offer as part of its acquisition by Jones Apparel Group Inc.

The tender offer runs through 11:59 p.m. ET on Dec. 15 and the early consent date is Dec. 1.

For each $1,000 principal amount at maturity of the notes, Barney's will pay the present value of the notes' $1,029.77 redemption price on their first call date of April 1, 2006 plus the present value of all scheduled interest payments from the initial payment date until April 1, 2006, discounted at 50 basis points over the yield on the 1.50% U.S. Treasury Note due March 31, 2006.

Accrued interest from the last interest payment date to, but not including, the initial payment date and the consent payment will be subtracted from this figure. The reference yield will be calculated at 2 p.m. ET on the third business day before the notes are first accepted for payment.

Holders who tender by the consent date will receive a consent payment of $30 per $1,000 principal amount at maturity.

The offer is subject to conditions, including the receipt of consents from holders of at least a majority of the principal amount at maturity of the notes, completion of the acquisition and other conditions.

Citigroup is dealer manager and solicitation agent (800 558-3745 or 212 723-6106). Global Bondholder Services Corp. is the information agent (866 470-4200).

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