Prestige Brands gets needed consents to amend $250 million 8¼% notes

By Jennifer Chiou

New York, Dec. 17 - Prestige Brands, Inc. announced that it has obtained tenders and consents from holders of $201.71 million, or 80.68%, of its $250 million of outstanding 8¼% senior notes due 2018 in the offer for any and all of the notes.

The consent deadline was 5 p.m. ET on Dec. 16.

The company received enough consents for certain proposed amendments that will eliminate substantially all of the restrictive covenants, certain events of default and related provisions contained in the indenture.

According to a news release, the proposed amendments will also automatically release liens on the collateral that secures Prestige Brands' obligation that the notes be secured on an equal and ratable basis with the obligations under its credit agreement.

The offer and consent solicitation will expire at midnight ET on Dec. 31.

The company is offering $1,063.30 per $1,000 principal amount, including a consent payment of $30.00 for those who tendered by the consent deadline.

Prestige Brands will also pay accrued interest.

The company was looking to obtain consents from holders of a majority of the notes.

Morgan Stanley & Co. LLC (800 624-1808 or call collect 212 761-1057) is the dealer manager and solicitation agent, and D.F. King & Co., Inc. (800 431-9643 or call collect 212 269-5550) is the tender agent and information agent.

Prestige is a Tarrytown, N.Y.-based marketer and distributor of brand name over-the-counter and household products. It began the offer on Dec. 3.

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