North American Van Lines tenders for 13 3/8% notes

New York, Oct. 21 - North American Van Lines, Inc. (B3) said that it had begun a cash tender offer and related consent solicitation for any and all of its $150 million of outstanding 13 3/8% senior subordinated notes due 2009.

North American Van Lines, a Fort Wayne, Ind.-based national moving and storage company, set 5 p.m. ET on Oct. 31 as the consent deadline, set Nov. 13 as the pricing date and said that the offer would expire at 5 p.m. ET on Nov. 18, with all deadlines subject to possible extension.

If the offer is extended, the new consent date will be a fixed date at least five business days prior to the expiration date. The new pricing date will be prior to the opening of business on a date such that two whole business days would have elapsed between that date and the extended expiration of the offer.

Holders tendering their notes will be required to consent to certain proposed amendments to the notes' indenture that would eliminate or modify substantially all of the restrictive covenants and certain other provisions contained in the indenture. Holders may not tender their notes without delivering consents or deliver consents without tendering their notes.

The company said that it would determine the consideration to be paid for tendered notes using a formula based on a fixed spread of 75 basis points over the yield to maturity on the pricing date of the reference security, the 2% Treasury note due Nov. 30, 2004. Total consideration to be paid to those holders who tender their notes (and thus deliver their consents to the desired indenture changes) on or before the consent deadline and who do not subsequently validly withdraw them before the consent deadline will include a $30 per $1,000 principal amount consent payment. Holders tendering after the consent deadline will not receive the consent payment as part of their consideration

North American said the tender offer and consent solicitation is subject to the satisfaction of certain conditions, including the consummation of a planned initial public offering by SIRVA, Inc., its parent company; the consummation of certain financing transactions by the North American; and the execution of the proposed indenture amendments following receipt by the company of consents representing at least a majority of the outstanding notes.

Banc of America Securities LLC will act as the exclusive dealer manager and solicitation agent (contact High Yield Special Products at 888 292-0070 or collect at 704388-4807). Requests for documentation should go to the information agent, Global Bondholder Services Corp. (866 470-3600 or collect at 212 430-3774).

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