Petco to sell common shares; proceeds to redeem 10¾% notes

New York, May 19 - Petco Animal Supplies, Inc. (B2) said it filed a preliminary prospectus supplement to its existing shelf registration statement with the Securities and Exchange Commission relating to a proposed public offering of 12.5 million shares of its common stock, including 2.5 million to be offered by Petco and the remaining 10 million shares to be offered by selling stockholders.

The San Diego-based specialty retailer of premium pet food, supplies and services said that it intends to use the net proceeds of the offering to redeem $40 million in principal amount of its 10¾% senior subordinated notes due 2011 or otherwise repay indebtedness. Petco will not receive any proceeds from the sale of the shares by the selling stockholders.

The company did not specify as to how much of the $200 million of the notes that were originally issued in October, 2001 is currently outstanding.

Jo-Ann Stores buys back $46 million 10 3/8% notes

New York, May 19 - Jo-Ann Stores, Inc. said it bought back $46 million of its 10 3/8% senior subordinated notes during the first quarter of fiscal 2004, ended May 3, 2003.

The transactions leave $77 million of the notes outstanding, the Hudson, Ohio fabric and craft retailer said.

In connection with the repurchases, Jo-Ann Stores recorded a pre-tax charge of $3.4 million in the first quarter to recognize the premium paid and to write off related deferred finance charges.

The buybacks will save $3.7 million pre-tax annually in interest costs, based on current Libor rates, the company added.

Werner to hold call on recapitalization, consent solicitation

New York, May 19 - Werner Holding Co. announced a consent solicitation for its 10% senior subordinated notes due 2007 in conjunction with the recapitalization announced on May 7.

The company will hold a conference call at 10.00 a.m. ET on May 20 to discuss the recapitalization and consent solicitation (U.S.: 800 247-9979, international: +1 973 935-2100).

Holders who submit valid consents will receive $15 per $1,000 principal amount of the 10% notes on completion of the recapitalization.

The consent solicitation expires at 5.00 p.m. ET on May 28.

Solicitation agents are J.P. Morgan Securities Inc. and Citigroup Global Markets Inc. and the information agent is MacKenzie Partners, Inc. (212 929-5500 or 800 322-2885).

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