Saks offers to exchange cash, new debt for 8¼% notes

New York, Nov. 4 - Saks Inc. (B1) said it would offer to exchange cash and new debt for its $451.55 million of outstanding 8¼% notes due 2008, and would solicit noteholder consents to proposed changes in the notes' indenture.

Saks said that the exchange offer will terminate at 5 p.m. ET on Dec. 3, set a consent deadline of Nov. 18 and set a withdrawal deadline (up until which tenders of the existing notes may be withdrawn at any time) of 5 p.m. ET on Nov. 20, with all deadlines subject to possible extension.

Saks, a Birmingham, Ala.-based operator of retail store chains, said that it would offer to exchange $333 in cash - including a $20 consent payment for those holders tendering their notes by the consent deadline - and $797 in principal amount of new 7% notes due 2013 per $1,000 principal amount of the 8¼% notes tendered and accepted for exchange. Holders tendering their 8¼% notes will be required to consent to the proposed indenture amendment. Saks issued $500 million of the 8¼% notes in November 1999.

The exchange offer will be subject to customary conditions including the receipt by the company of more than $225.775 million in aggregate principal amount of the 8¼% notes. The proposed indenture amendment will require the receipt of consent from holders of a majority of the outstanding 8¼% notes.

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