Telex says holders tender over 97% of notes in exchange offer

New York, Nov. 4 - Telex Communications, Inc. (B3/B) said that 97.1% of its outstanding 13% senior subordinated discount notes have been tendered in exchange for new debt under the company's previously announced exchange offer, part of its overall debt refinancing plan. It said that level of noteholder participation satisfied the previously announced minimum tender and consent condition of the exchange offer. Tendering holders may no longer revoke their tenders and consents.

Telex - which had not previously publicly announced any deadlines for the exchange offer - said that the offer will remain open until 5 p.m. ET on Nov. 18. Any holders who have tendered existing notes after the already-passed Nov. 3 consent deadline will not be entitled to receive a consent fee.

As previously announced, Telex, a Minneapolis-based audio technology company, said in a filing with the Securities and Exchange Commission on Oct. 23 that its newly formed Telex Communications Intermediate Holdings, LLC subsidiary was offering to exchange new 13% senior subordinated discount notes due 2009 for the company's existing 13% 2006 notes as part of the overall refinancing of its existing debt.

Telex also said that as part of the refinancing, the indenture governing the 2006 notes would be amended to delete substantially all of its covenants.

It further stated that Telex Newco Inc., a newly formed subsidiary of Telex Communications Intermediate Holdings which will be renamed Telex Communications, Inc. upon completion of all of the refinancing transactions, would offer $125 million principal amount of new five-year senior secured notes for sale, and substantially all of the assets and liabilities of the current Telex Communications would be contributed to Telex Newco, other than any of the 2006 notes which are not tendered in the exchange offer.

The new notes were sold at par on Oct. 31 via Jeffries & Co. Telex said on Nov. 3 that the bond sale would officially close on Nov. 19.

It also said that as of that date, 91.2% of the outstanding 13% notes had been tendered, a level of noteholder participation that satisfied the previously announced minimum tender and consent condition of the exchange offer.

Telex - which had not previously publicly announced any deadlines for the exchange offer - said that the consent date had been extended to 5 p.m. ET on Nov. 3, with a view toward obtaining a portion of the remaining notes not already tendered.

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