EchoStar to partially redeem 9 1/8% notes

New York, Aug. 4 - EchoStar Communications Corp. (Ba3) said that its EchoStar DBS Corp. subsidiary has elected to redeem $245 million principal amount of its 9 1/8 % senior notes due 2009.

The redemption will take place on Sept. 3 at a price of 109.125% of the principal amount, for a total expenditure by the company of approximately $267 million. Holders will also receive interest on the notes through the Sept. 3 redemption date.

Following the redemption, $455 million of the notes will remain outstanding out of the $700 million originally issued in December 2001.

EchoStar, a Littleton, Colo.-based provider of satellite TV programming, said that it has elected to make the partial redemption to reduce its interest expense. The company also noted that it had previously redeemed all of its $375 million of 9¼% senior notes due 2006, effective this past Feb. 1.

The trustee for the notes is U.S. Bank NA (800 934-6802), which will process the redemption transactions.

Marsh Supermarkets buys back $9.5 million notes

New York, Aug. 4 - Marsh Supermarkets, Inc. said it bought back $9.5 million of its 8 7/8% senior subordinated notes during its first fiscal quarter at a price of 91.625.

The Indianapolis company said the repurchase resulted in a gain of $634,000.

Marsh funded the transaction with bank borrowings which, at current interest rates, will reduce annual interest expense by $450,000.

At June 21, the company had $110.0 million of the notes outstanding.

EaglePicher extends tender offer for 9 3/8% notes

New York, Aug. 4 - EaglePicher Inc. (B3/B-) said that it has extended its previously announced tender offer for its 9 3/8% senior subordinated notes due 2008, which had been scheduled to expire at 11:59 p.m. ET on Aug. 5; the offer will now expire at 11:59 p.m. on Aug. 6, subject to possible further extension.

As previously announced, EaglePicher - a Phoenix-based diversified manufacturer of industrial products and a wholly -owned subsidiary of EaglePicher Holdings, Inc. - said on July 9 that it had begun the cash tender offer and related consent solicitation for any and all of its $220 million of outstanding 9 3/8% notes.

The company initially set a (now-expired) consent deadline of 5 p.m. ET on July 22 and an expiration date of 11:59 p.m. on Aug. 5, although the latter was later extended.

EaglePicher said that besides tendering for the notes, it was seeking consent from the noteholders to amend the notes' indenture to eliminate certain of the restrictive covenants and other contractual obligations, including the requirement that EaglePicher and certain of its affiliates provide periodic financial reports to the noteholders.

The company said on July 23 that the consent solicitation had expired as scheduled at 5 p.m. ET on July 22, without extension, and that EaglePicher had received tenders of notes and delivery of related consents from the holders of 95% of the notes, more than the required minimum, and that along with certain guarantors of the notes and The Bank of New York, as trustee, it had executed a supplemental indenture incorporating the indenture changes. Those changes will become operative once the notes are accepted for purchase following the expiration of the tender offer.

The company said that holders validly tendering their notes and delivering consents by the now-expired consent deadline would receive total consideration of $1,000 per note (including a $10 per note consent payment), plus accrued and unpaid interest on the principal amount up to, but not including, the payment date.

Holders validly tendering their notes and delivering consents after expiration of the consent deadline would receive only the tender offer consideration of $990 per note, but no consent payment, and would also receive accrued interest.

EaglePicher said it planned to finance the tender offer and consent solicitation with the proceeds of a Rule 144A offering of approximately $220 million aggregate principal amount of new senior unsecured notes, together with other available funds. High yield syndicate sources reported on July 23 that EaglePicher had sold an upsized $250 million offering of new 9¼% senior notes due 2013.

Additionally, the company said it was negotiating a new senior secured credit facility of approximately $275 million to replace its current credit facility, which provided for an original term loan of $75 million, as amended, and a $220 million revolving facility.

EaglePicher said its obligation to accept for purchase and to pay for the notes in the tender offer would be conditioned upon, among other things, the receipt by the company in the tender offer of at least a majority of the aggregate principal amount of the outstanding notes by the expiration date (and those notes being not validly withdrawn), as well as the now-fulfilled condition of receipt of validly tendered consents from holders of a majority in principal amount of the outstanding notes by the consent deadline.

It would also be conditioned upon the receipt by the company of net proceeds from the planned offering of senior unsecured notes or other financing on acceptable terms in a sufficient aggregate amount to pay for the tender offer and consent solicitation and related expenses, which has since been accomplished, and on the completion of EaglePicher's new senior secured credit facility.

UBS Securities, LLC is the dealer manager for the tender offer and consent solicitation (call collect at 203 719-4210); D.F. King & Co., is the information agent (call 800 697-6975).

Sonic Automotive to redeem 11% notes with new-deal proceeds

New York, Aug. 4 - Sonic Automotive, Inc. (B2) said that it plans to offer $200 million of senior subordinated notes due 2013, with a portion of the proceeds from the new Rule 144A offering to be used to redeem in full its 11% senior subordinated notes due 2008, plus the redemption premium. Sonic issued $200 million of the notes in July 1998, but did not say how many are currently outstanding.

Sonic, a Charlotte, N.C. -based owner of auto dealerships, said that new bond offering is expected to close in mid-August. Sonic said that besides the redemption of the 11% notes, it also will use proceeds from the new deal to repay a portion of the company's existing revolving credit facility, which amounts may be reborrowed for general corporate purposes, including future acquisitions.

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