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California Steel obtains consents to amend 8½% notes
New York, March 19 - California Steel Industries, Inc. said it obtained the necessary consents to amend the indenture for its $150 million principal amount of 8½% senior notes due 2009.
By the consent deadline of 5 p.m. ET on March 19, the Fontana, Calif. steelmaker had obtained valid tenders and consents from holders of $132.14 million principal amount of the notes, 88.09% of the total.
The amendments will eliminate substantially all of the restrictive covenants in the indenture.
California Steel said on March 8 it had begun a cash tender offer and consent solicitation for the 8½% notes.
The company is offering to pay $1,046.25 per $1,000 principal amount of notes tendered by the consent deadline of 5 p.m. ET on March 19.
Holders who tender after the consent deadline but before the expiration date of midnight ET on April 2 will receive $1,016.25 per $1,000 principal amount.
In both cases holders will also receive accrued interest up to but not including the date of payment.
Holders who tender will be required to consent to amendments to the note indenture that will eliminate substantially all the restrictive covenants. Consents may not be given without tendering.
California Steel said the tender offer is subject to various conditions including the receipt of tenders of a majority of the principal amount of the notes outstanding and the receipt of sufficient senior financing on acceptable terms. On March 9 it priced $150 million of new notes to yield 6 1/8%.
Banc of America Securities LLC is the dealer manager and solicitation agent (contact High Yield Special Products at 888 292-0070 or collect at 704 388-9217). Global Bondholder Services is the information agent (866 470-4300 or collect at 212 430-3774).
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