JLG accepts tenders for nearly all of 8¼%, 8 3/8% notes

By Laura Lutz

Washington, Dec. 6 - JLG Industries, Inc. accepted tenders for nearly all of its outstanding 8¼% senior notes due 2008 and 8 3/8% senior subordinated notes due 2012 after its tender offers expired at midnight ET on Dec. 5.

The company accepted tenders for $87.395 million of its $89.545 million of 8¼% notes and $112.932 million of its $113.75 million of 8 3/8% notes.

As of the consent deadline at 5 p.m. ET on Nov. 21, the company had obtained tenders from holders of more than 97.5% of its 8¼% notes and more than 99.2% of its 8 3/8% notes.

The consents allowed the company to eliminate most of the restrictive covenants and events of default in the note indentures.

The tender offers began on Nov. 6.

For each $1,000 principal amount of notes, the company will pay $1,038.29 for the 8¼% notes and $1,054.84 for the 8 3/8% notes.

The company calculated the payouts based on a fixed spread of 50 basis points over the bid side yield on the 4.875% Treasury due April 30, 2008 for the 8¼% notes and the 3.5% Treasury due May 31, 2007 for the 8 3/8% notes.

The payouts include a $30.00 per $1,000 principal amount consent payment for those who tendered by the consent deadline. Pricing was set at 2 p.m. ET on Nov. 21.

JLG said that the offers were required by the merger agreement with Oshkosh Truck Corp. and Steel Acquisition Corp.

The dealer managers are J.P. Morgan Securities Inc. (call collect 212 270-3994) and Banc of America Securities LLC (call collect 704 388-9217). The information agent is Innisfree M&A Inc. (888 750-5834 or call collect 212 750-5833).

JLG is a McConnellsburg, Pa., provider of access equipment and highway-speed telescopic hydraulic excavators.

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