Clark American sets pricing in tender offer for 11¾% notes

By Laura Lutz

Des Moines, April 19 - Clarke American Corp. announced pricing in its tender offer and consent solicitation for all its $175 million outstanding principal amount of 11¾% senior notes due 2013.

The offer was launched on April 5, and the consent deadline was 5 p.m. ET on April 18. The tender offer ends at 9 a.m. ET on May 3.

For each $1,000 principal amount of notes tendered by the consent deadline, the company will pay $1,213.10.

That amount is based on a fixed spread of 50 basis points over the yield on the 3.5% Treasury due Dec. 15, 2009. The price was set at 2 p.m. ET on April 18.

The payout includes a consent payment of $30.00 per $1,000 principal amount of notes. Notes tendered after the consent deadline will not receive the consent payment.

The company is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and some of the default provisions.

The offer and solicitation are linked to Clarke American's previously announced acquisition of John H. Harland Co.

Holders who tender must deliver consents.

The tender offer is conditioned on the receipt of the required consents as well as the completed merger. The offer is not, however, a condition of the merger.

Bear, Stearns & Co. Inc. is the dealer manager and solicitation agent (call collect 212 272-5112 or 877 696-BEAR). D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 800 628-8536).

Clarke American is a San Antonio company that provides documents and related services to financial institutions.

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