U.S. Steel raises 10¾% '08 noteholder consent solicitation fee

New York, May 13 - United States Steel Corp. (B1) said that it has increased the fee to be paid to holders of its 10¾% senior notes due 2008 under its previously announced solicitation of noteholder consents to proposed indenture changes. The consent fee was raised from the originally announced $1.25 per $1,000 of principal amount outstanding for which a consent to the solicitation is validly delivered and not revoked prior to the expiration date to $2.50 per $1,000 principal amount.

The consent solicitation was scheduled to expire at 5 p.m. ET on May 13, subject to possible extension.

As previously announced, the Pittsburgh-based steelmaker said on May 6 that it would seek the consent of the noteholders of record (as of May 6) to the indenture changes, which are aimed at amending certain provisions of the notes' indenture to make them conform to the indenture of a new $350 million issue of notes the company is planning in connection with the financing of its acquisition of substantially all of the assets of the bankrupt National Steel Corp.

U.S. Steel said that payments for the consents would be conditioned upon, among other things, the company receiving consents from holders of a majority in principal amount of the outstanding notes.

JP Morgan Securities Inc. (call 212 270-7967) and Goldman, Sachs & Co. (call 212 902-6351) are joint solicitation agents for the consent solicitation; Georgeson Shareholder (call 212 440-9800 or 800790-4667) is the information agent.

Packaged Ice to be bought out, 9 ¾% '05 notes eyed for redemption

New York, May 13 - Packaged Ice, Inc. (Caa3/B-) said that it has signed a definitive merger agreement with a new entity to be formed by Trimaran Capital Partners and Bear Stearns Merchant Banking, with the total value of the transaction put at $450 million.

The Dallas-based manufacturer and distributor of packaged ice said that under the terms of the agreement, its common shareholders will receive approximately $3.62 per share in cash if the transaction is closed on or before Sept. 15, subject to the company consummating the repurchase of its preferred Stock on agreed-upon terms; should the closing occur after Sept. 15, the shareholders will receive $3.50 per share.

The company's outstanding 9¾% senior notes due 2005 and 10% preferred stock will be redeemed upon closing of the merger. An undetermined amount of the $270 million of the notes originally sold in January 1998 is currently outstanding.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.