Alderwoods bought back some 12¼% notes during second quarter

New York, July 26 - Alderwoods Group Inc. (B2) said that during its fiscal second quarter ended June 19 it bought back $9.3 million principal amount of its outstanding 12¼% senior unsecured notes due 2009. The company said in its 10-Q quarterly filing with the Securities and Exchange Commission that it paid an additional $1.1 million premium in connection with the buyback of the notes, as well as accrued interest.

Alderwoods said that it had $320.8 million of the notes outstanding as of the end of the quarter and said that the transaction, as well as other debt-reduction measures it had recently taken and lower effective interest rates, had helped bring its interest expense on long-term debt down to $14.5 million during the quarter, a $3.9 million decrease from a year earlier.

As previously announced, Alderwoods, a Cincinnati-based funeral home and cemetery operator, said on July 22 that it had begun a tender offer for all of the remaining $320.8 million of the 12¼% notes, as well as a solicitation of noteholder consents to proposed indenture changes. The tender offer is scheduled to expire on Aug, 18, subject to possible extension.

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