Alere gets consents for 47.7% of 9% notes, not enough to OK amendments

By Toni Weeks

San Luis Obispo, Calif., May 28 - Alere Inc. said it received tenders and consents for about $190.6 million, or 47.7%, of its $400 million principal amount of 9% senior subordinated notes due 2016 by 5 p.m. ET on May 23, the consent date for the company's consent solicitation and tender offer.

The amount of consents received was insufficient to approve the proposed amendments to the indenture governing the notes; thus, the indenture will not be amended.

As previously noted, the company was soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and events of default. Holders of a majority of the notes had to consent to the amendments to the notes in order for them to be made.

The total purchase price is $1,050 for each $1,000 principal amount of notes tendered by the consent date. The total payment includes a consent premium of $30 per $1,000 principal amount.

The $190.6 million of notes tendered by the consent date have been purchased.

The tender offer will end at 11:59 p.m. ET on June 7. Those who tender after the consent date will receive $1,020 per $1,000 of notes.

The company also will pay accrued interest up to but excluding the settlement date.

The company also announced that all 9% notes outstanding on June 24 will be redeemed on that date at 104.5% of par plus accrued interest from May 15 up to but excluding June 24.

Holders could not tender notes before the withdrawal deadline without delivering consents, and holders could not give their consents without tendering their notes, according to a previous company press release.

The company also announced it has completed a $425 million offering of 6½% senior subordinated notes due June 15, 2020, the proceeds of which will be used to finance the redemption or repurchase of the 9% notes. Alere said previously that the tender offer and consent solicitation were conditioned on completing a capital markets debt offering with enough proceeds to fund the offer.

Goldman Sachs & Co. (800 828-3182 or collect 212 357-6436) is the dealer manager and solicitation agent. i-Deal LLC (888 593-9546 or brokers and bankers 212 849-3880) is the tender agent and information agent.

Alere is a Waltham, Mass.-based provider of near-patient diagnosis, monitoring and health management.

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