Brand Services tenders for 12% notes

New York, May 9 - Brand Services, Inc. said it has begun a cash tender offer and consent solicitation for its $150 million principal amount of 12% senior subordinated notes due 2012.

For each $1,000 principal amount of notes, the company is offering the present value of cash flows to the first call date of Oct. 15, 2007, when the securities are callable at $1,060 per $1,000 principal amount, discounted using a rate of 62.5 basis points over the yield of the 4% U.S. Treasury note due Sept. 30, 2007. Pricing will be set on May 23.

The total includes a consent payment of $30.00 per $1,000. Only holders who tender with consents by the consent deadline of 5 p.m. ET on May 22 will receive this sum.

Brand Services will also pay accrued interest up to but excluding the payment date.

The tender ends at 5 p.m. ET on June 7.

The consent solicitation is to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

Holders cannot tender without delivering consents or vice versa.

Completion of the tender is subject to completion of Brand Services' initial public offering and the receipt of consents from holders of a majority of the notes.

Credit Suisse Securities (USA) LLC is dealer manager and solicitation agent (800 820-1653 or call collect 212 538-0652). D.F. King & Co., Inc. is the information agent (800 949-2583).

Brand Services is a Kennesaw, Ga., provider of scaffolding services.

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