Birds Eye Foods announces partial redemption of 11 7/8% notes

New York, Oct. 24 - Birds Eye Foods, Inc. (B3) said that it had irrevocably notified the holders of its $200 million of outstanding 11 7/8% senior subordinated notes due 2008 that it has called $150 million of the notes for redemption on Nov. 24.

The notes to be redeemed will be selected in accordance by the trustee in accordance with procedures outlined in the notes' indenture.

Upon redemption, holders whose notes have been selected for redemption will receive $1,059.38 per note, plus accrued and unpaid interest.

As previously announced, Birds Eye, a Rochester, N.Y. -based producer of frozen vegetable products, said on Sept. 30 that it had received consent from its senior lenders for an amendment to its existing senior credit agreement, which, among other things would allow the company to repurchase up to $150 million of the $200 million of outstanding 11 7/8% notes.

Birds Eye said that repurchases permitted by the amendment could begin any time on or after Nov. 1.

The company additionally said that the terms of the amendment will also permit Birds Eye to purchase additional notes in the future, subject to it achieving certain specified financial performance requirements.

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