Louisiana-Pacific modifies terms of 10 7/8% note tender, extends consent deadline

New York, Dec. 3 - Louisiana-Pacific Corp. (B2/BB-) said that it had modified its previously announced tender offer and related consent solicitation for its 10 7/8% senior subordinated notes due 2008.

The company said that it has not received the necessary consents by the original deadline of 2 p.m. ET on Dec. 2 and is therefore extending the solicitation period to coincide with the tender offer expiration deadline, currently 9 a.m. ET on Dec. 16, with both deadlines subject to possible further extension.

The company is also eliminating the separate consent payment - previously $10 per $1,000 principal amount - so that all holders who have already tendered their notes or who tender them by the expiration date will receive just the tender offer consideration of $1,170 per $1,000 principal amount, plus accrued and unpaid interest.

Although holders who tender notes will now be deemed to have granted consents, no additional compensation will be paid for any the consents.

The company further said that it had waived or modified the conditions to the offer so that the only remaining conditions to the offer are that the holders of at least a majority of the outstanding principal amount of the notes validly tendered them by the expiration and do not subsequently withdraw them and that there be no court order, government decree or other legal action that might prohibit or prevent completion of the tender offer.

Additionally, Louisiana-Pacific said that the withdrawal rights associated with the tender offer and consent solicitation have been modified so that any notes tendered may be withdrawn at any time prior to 9 a.m. ET on Dec. 10. No withdrawals will be permitted after that.

The consent solicitation is to would suspend substantially all of the restrictive covenants contained in the notes' indenture, subject to Louisiana-Pacific's maintenance of specified corporate credit ratings, and to relax certain other restrictive covenants of the indenture.

As previously announced, Louisiana-Pacific, a Portland, Ore.-based building materials supplier, said on Nov. 17 that it had begun a tender offer and consent solicitation for any and all of its $200 million of outstanding 10 7/8% notes.

The company initially set 2 p.m. ET on Dec. 2 as the consent deadline (this was subsequently extended) and 9 a.m. ET on Dec. 16 as the expiration, subject to possible extension.

The dealer-manager for the tender offer is UBS Securities LLC (call the Liability Management Group at 203 719-4210 or toll-free at 888 722-9555, ext. 4210). The information agent is D.F. King & Co., Inc. (888 628-9011).

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