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| Prospect News home > News index > List of issuers D > Headlines for Durango (Corporación Durango SAB de CV) > News item |
Durango further extends tender offer for series B step-up notes
By Angela McDaniels
Seattle, Aug. 17 - Corporacion Durango SAB de CV extended its tender offer for its series B step-up rate senior secured guaranteed notes due 2012 to 5 p.m. ET on Aug. 24 from Aug. 10.
Previously, the offer was extended from July 26 and from July 19.
As of 5 p.m. ET on Aug. 10, holders had tendered $370,980,723 of the notes, or 88.4%.
The number shows an increase from the $368,886,300 of notes tendered as of July 26 and the $364,671,818 of notes tendered as of July 19.
As previously announced, the Durango, Mexico, paper company is also soliciting consents to amend the note indenture and the common agreement to eliminate certain covenants and related events of default.
Durango said it will pay 103.125% for the notes, including a 3.125% early participation payment for those who tendered by 5 p.m. ET on July 5, the early participation date.
Of the notes tendered, $359,730,986, or 85.7% of the total outstanding, were tendered by the early deadline.
Those who tender will also receive accrued interest to the settlement date.
The company needed consents from holders of a majority of notes.
The offer is conditioned upon the execution of a supplemental indenture, tenders from holders of a majority of notes and the receipt of at least $520 million of proceeds from a note issue as well as shareholder approval. Shareholder approval has now been obtained and the supplemental indenture has been executed.
Merrill Lynch, Pierce, Fenner & Smith Inc. (attn: Liability Management Group at 888 654-8637 or 212 449-4914) is the dealer manager. Global Bondholder Services Corp. (866 794-2200 or call collect 212 430-3774) is the information agent.
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