Airborne extends tender for convertibles

New York, Nov. 19 - Airborne Inc. said it has extended its tender offer and consent solicitation for its $150 million 5¾% convertible senior notes due 2007 to 5.00 p.m. ET on Nov. 20 from 11.59 p.m. ET on Nov. 19.

As of 5.00 p.m. ET on Nov. 19, $32.852 million principal amount of the convertibles, or 21.90% of the amount outstanding, had been tendered. No notes had been tendered in the change of control offer.

Airborne previously announced on Nov. 5 it was amending its tender offer and consent solicitation for its 5¾% convertibles.

Among other changes, the modification allows holders to select cash and stock in exchange for the notes. Previously Airborne was only offering a cash option.

The Seattle shipping company, a subsidiary of DHL Worldwide Express BV, is now offering holders the choice of either $1,080 in cash per $1,000 principal amount of convertibles or $988.65 in cash plus 42.7599 shares of ABX Air Inc. per $1,000 principal amount. To receive the cash and stock option, holders must agree to convert their notes under the securities' terms; they are currently convertible into $908.65 in cash and 42.7599 shares of ABX Air.

As part of the tender, Airborne is seeking consents to proposed amendments to the registration rights agreement for the notes.

In addition, Airborne is separately conducting a change-of-control tender as required following its acquisition by DHL on Aug. 15.

In this offer, Airborne will pay holders par plus accrued interest in cash.

Deutsche Bank Securities Inc. is dealer manager and solicitation agent for the tender offer (contact Jenny Lie at 866-627-0391 or 212-250-7445). D.F. King & Co. Inc. is the information agent (888-887-0082, bankers and brokers call collect 212 269-5550) and Deutsche Bank Trust Co. Americas is the depositary.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.