Ferro ups payout, adds condition for 6.5% convertibles tender offer

By Jennifer Chiou

New York, Aug. 5 - Ferro Corp. announced amendments to the tender offer for its $172.5 million of 6.5% convertible senior notes due 2013, including an increase to the payout.

The company is now offering 103, up from 101, plus accrued interest up to but excluding the settlement date.

The tender offer will expire at midnight ET on Aug. 23. It began on July 27.

In connection with the tender offer, Ferro plans to offer $250 million principal amount of senior notes and enter into a new credit facility. The company already said it is in negotiations with its existing lenders to enter into the new credit facility.

The tender offer is now conditioned on the successful completion of the notes offering and Ferro's entry into the new credit facility as well as the availability of funds.

Previously, the offer required either entry into the new facility or an amendment to, or its receipt of a waiver under, its existing credit facility.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147) is the dealer manager for the tender offer, and Global Bondholder Services Corp. (866 873-7700) is the information agent.

Ferro is a Cleveland-based supplier of technology-based performance materials for manufacturers.

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