Phibro Animal Health says all 15% notes, nearly all 13%, 9 7/8% notes tendered

By Angela McDaniels

Seattle, Aug. 1 - Phibro Animal Health Corp. and PAHC Holdings Corp. said holders tendered 100% of their 15% senior secured notes due 2010 and more than 98% of their 13% senior secured notes due 2007 and 9 7/8% senior subordinated notes due 2008 during a tender offer that expired at 11:59 p.m. ET on Friday.

The tender offer and a concurrent consent solicitation began on June 30. The company received the consents needed to amend the indenture governing the notes to eliminate all restrictive covenants and events of defaults.

For each $1,000 principal amount of 13% notes, the company said it will pay $1,034.75, an amount based on the 2 7/8% Treasury note due Nov. 30, 2006. The total consideration includes a $10.00 consent payment for holders who tendered their notes before the consent deadline, July 14.

For each $1,000 principal amount of 9 7/8% notes, the company said it will pay $1,004.40, which includes a $4.40 consent payment for holders who tendered by the early deadline.

For each $1,000 principal amount of 15% notes, the company will pay $1,158.70, including an $8.70 consent payment for holders who tendered prior to the consent deadline.

Holders who tendered will also receive accrued interest up to but excluding the payment date.

The company said the remaining outstanding 13% notes were defeased to Dec. 1, on which date they will be redeemed, and the remaining outstanding 9 7/8% notes have been called for redemption on Sept. 1.

In connection with the repurchase of the notes, Phibro has refinanced its long-term debt, repaid debt outstanding under its senior credit facility, amended the terms of its senior credit facility to provide for up to $65 million of revolving credit and simplified its corporate structure by merging PAHC Holdings into Phibro with Phibro surviving the merger.

Phibro is a Ridgefield Park, N.J.-based animal health and nutrition products company.

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