Ainsworth gets tenders for $311.41 million 7½% notes, redeems rest

By Angela McDaniels

Tacoma, Wash., April 30 – Norbord Inc. subsidiary Ainsworth Lumber Co. Ltd. received tenders and consents for $311,412,000 principal amount, or 98.86%, of its 7½% senior secured notes due 2017, according to a company news release.

A tender offer and consent solicitation for the notes began April 1. The early tender deadline was 5 p.m. ET on April 15, and the tender offer ended at midnight ET on April 29.

All of the notes tendered in the offer were tendered by the early tender deadline. They were accepted for purchase on April 16.

The holders received $1,042.50 per $1,000 principal amount of notes plus accrued interest, which amount included the early tender payment of $30.00 per $1,000 principal amount of notes.

Ainsworth redeemed the $3,588,000 of remaining outstanding notes on April 30 at 103.75% of par plus accrued interest up to the redemption date.

The consents received exceeded the amount needed to adopt the proposed amendments to the indenture governing the notes. As a result, Ainsworth executed a supplemental indenture that, among other things, eliminated substantially all of the restrictive covenants, eliminated or modified some of the events of default, reduced the minimum notice period to holders to redeem the notes to three business days from 30 days and released the liens for the benefit of the holders on the assets that secured the notes.

Completion of the tender offer was subject to conditions, including Norbord raising at least $315 million of new debt and the amendment of the indenture. Norbord priced $315 million of non-callable eight-year senior secured notes (Ba2/BB-) at par to yield 6¼% on April 1, according to a syndicate source.

The dealer manager and solicitation agent was RBC Capital Markets, LLC (877 381-2099 or 212 618-7822). The information agent and tender agent was Global Bondholder Services Corp. (866 807-2200 or 212 430-3774).

Norbord is a Toronto-based manufacturer of wood-based panels and oriented strand board.

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