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Equinox Holdings tenders for $160 million 9% notes due 2009
By Jennifer Chiou
New York, Jan. 12 - Equinox Holdings, Inc. announced the launch of a cash tender offer for any and all of its $160 million of 9% senior notes due 2009.
The New York fitness club operator also said it is soliciting consents to amend the notes' indenture to eliminate all restrictive covenants, events of default and other provisions. Equinox must obtain tenders from a majority of noteholders to adopt the amendments.
The tender offer and consent solicitation are for the company's planned merger with The Related Cos., LP and subsidiary R-E Merger Corp.
The consent solicitation expires at 5 p.m. ET on Jan. 25. The offer ends at midnight ET on Feb. 8, unless extended.
For each $1,000 principal amount of notes, Equinox said it will pay the present value of $1,045 - the redemption price of the notes on Dec. 15, 2006, the notes' first call date - discounted using the yield to maturity of the 2 7/8% Treasury due Nov. 30 and 50 basis points.
The payout includes a $50.00 consent payment for those who tender their holdings before the consent deadline.
The offer is conditioned upon the completion of the merger; Related Cos. subsidiary Related Equinox Holdings Corp.'s receipt of financing to fund the merger consideration, the purchase of all validly tendered notes and consent payments and fees; the execution and delivery of a supplemental indenture; the amendment of the company's credit agreement and other conditions.
Merrill Lynch & Co. is the dealer manager and solicitation agent (call collect 212 449-4914 or 888 ML4-TNDR). Global Bondholder Services Corp. is the information agent (call collect 212 430-3774 or 866 470-4200).
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