DigitalNet to redeem $43.8 million 9% notes with IPO proceeds

New York, Aug. 8 - Digitalnet Holdings, Inc. said it plans to redeem $43.8 million of its 9% senior notes due 2010 with proceeds from its initial public offering.

The Herndon, Va. provider of network, information security and application development services to government agencies will redeem the notes at 109% of par for a total cost of $47.7 million, according to a filing with the Securities and Exchange Commission.

Any remaining proceeds will be used for general corporate purposes including working capital.

DigitalNet filed with the SEC Friday to sell $86.25 million of common stock in its IPO. Bookrunners will be Citigroup and UBS Investment Bank.

The company priced $125 million of the 9% notes on June 27, selling them at par. The equity claw for 35% at 109 runs through July 15, 2006.

Primus to redeem $10 million 11¾% notes

New York, Aug. 8 - Primus Telecommunications Group, Inc. said it will redeem $10 million of its 11¾% senior notes due 2004 on Sept. 15.

The securities will be redeem at par plus accrued interest.

The McLean, Va. telecommunications company currently has $43.5 million of the bonds outstanding.

Resource America buys back $11.3 million 12% notes

New York, Aug. 8 - Resource America Inc. said it bought back $11.3 million par amount of its 12% senior notes due August 2004.

Following the repurchase, the Philadelphia proprietary asset management company has $54.0 million of the notes outstanding.

Euramax tender for 11¼% subordinated notes expires

New York, Aug. 8 - Euramax International, Inc. (B2/B) said that its previously announced tender offer for all of its outstanding 11¼% senior subordinated notes due 2006 expired as scheduled at 5 p.m. ET on Aug. 7.

Euramax - which had previously announced its acceptance for purchase all of the approximately $112.8 million of notes which had been tendered by 5 p.m. ET on Aug. 5 - said that an additional $125,000 in principal amount of notes had been tendered in the tender offer on Aug. 7 before the offer expired. Euramax notified JPMorgan Chase Bank, the depositary for the tender offer, that it accepted that $125,000 of notes for payment, along with the previously tendered notes.

As previously announced, Euramax, a Norcross, Ga. producer of aluminum, steel, vinyl and fiberglass products, said on July 10 that it had begun a cash tender offer for any and all of the 11¼% notes, and was also soliciting consents to proposed amendments to the note indenture.

Euramax said the offer would expire at 5 p.m. ET on Aug. 7, subject to possible extension, and set a consent deadline of 5 p.m. ET on July 24; both deadlines expired as scheduled without extension. Euramax said on July 29 that it had received valid consents from the holders of record of more than a majority of the notes to the proposed indenture changes.

On Aug. 6, Euramax said that it had accepted for payment and would purchase all of the notes which had been validly tendered and not withdrawn by 5 p.m. ET on Aug. 5. As of that date, approximately $112.8 million in aggregate principal amount of the notes had been validly tendered and not withdrawn, and the aggregate cost to purchase the accepted notes, excluding interest, was figured at approximately $115.9 million. The company estimated that following the purchase of the notes accepted in the tender offer approximately $22.2 million of the notes would remain outstanding and be scheduled to mature on Oct. 1, 2006.

Euramax said it would pay 102% of the principal amount of the notes in the tender offer. Holders tendering by the consent deadline would also receive a consent payment of 0.75% of the principal amount. In addition to the appropriate consideration, all tendering holders would also receive accrued interest up to, but not including, the payment date.

The company said the tender offer would be subject to the now-fulfilled requirement for a majority of noteholders to consent to the indenture amendments and a majority of the notes be tendered. On Aug 6, Euramax said that proposed changes in the notes' indenture - which were previously consented to by a required majority of the noteholders and written into a supplemental indenture which it executed along with certain of its subsidiaries and JPMorgan Chase Bank, as trustee - became operative on August 6.

Other conditions included the receipt of proceeds from a planned new debt offering or other sources of cash; and its receipt of lender consents under its senior secured credit facility for the tender offer and new offering.

On July 21, the company announced plans to sell $200 million of new eight-year senior subordinated notes in a Rule 144A private placement transaction, with the net proceeds earmarked for debt repayment. High yield syndicate sources said on July 30 that the company had sold $200 million new 8½% notes due 2011. Euramax announced completion of the bond sale on Aug. 6.

UBS Securities LLC (Call Kevin Reynolds collect at 203 719-4210) was the lead dealer manager and solicitation agent and Banc of America Securities LLC was co-manager. D.F. King & Co., Inc. (800 431-9643 or 212 269-5550) was information agent. JP Morgan Chase Bank was the depositary.

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