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Bon-Ton to issue $330 million new notes in exchange for 10 5/8% notes
By Jennifer Chiou
New York, July 5 - Bon-Ton Stores, Inc. announced the final results of its exchange offer for the 10¼% senior notes due 2014 issued by its wholly owned subsidiary Bon-Ton Department Stores, Inc.
The company will issue a like amount of new 10 5/8% second-lien senior secured notes due 2017 in exchange for the $330 million of tenders for the 10¼% notes.
The offer began on June 4 and ended at midnight ET on July 3.
Settlement is anticipated for July 9.
By the early deadline of 5 p.m. ET on June 15, investors tendered $329.4 million, or 71%, of the notes.
As announced, the issuer obtained the needed consents to amend the notes and will execute a supplemental indenture.
The total exchange consideration included an early tender premium of $30.00 per $1,000 of notes, since all tendered notes were submitted by the early deadline.
There was no minimum tender condition, and the exchange offer was not conditioned on the completion of the consent solicitation. However, had consents from holders of a majority of the old notes not been received, interests in new second-lien secured loans would have been delivered in exchange for the notes tendered in the offer.
Holders who tendered their notes in the offer were deemed to have submitted consents.
The new notes will be secured by a second-priority lien on substantially all of the current and future assets of Bon-Ton and certain subsidiaries of Bon-Ton.
The purpose of the exchange offer was to enhance Bon-Ton's financial flexibility by refinancing the old notes to 2017, according to a previous release.
The offer was only for holders who are qualified institutional buyers under Rule 144A or not a U.S. person under Regulation S.
D. F. King & Co., Inc. (800 848-3416 or call collect 212 269-5550 or e-mail bonton@dfking.com) was the information agent.
The issuer is a York, Pa.-based department store operator.
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