Diamond Triumph buys $11.82 million 9¼% notes in tender

New York, Oct. 11 - Diamond Triumph Auto Glass, Inc. said it bought $11.82 million or 16.4% of its $72.058 million of 9¼% senior notes due 2008 in its modified Dutch auction tender offer at a price of $890 per $1,000 principal amount, the top end of the range.

The offer expired at 9 a.m. ET on Oct. 7 after being pushed back from 9 a.m. ET on Sept. 29.

Holders also delivered consents for $47.603 million or 66% of the notes, meeting the required threshold to amend the indentures.

Diamond Triumph previously extended the tender on Sept. 30 and cut the threshold for the offer to be completed to $8 million from $14 million.

As of the old deadline, holders had tendered $5.5 million or 7.6% of the notes and delivered consents for $20.6 million or 28.6%.

Before that, on Sept. 15, Diamond Triumph increased the price on offer and extended the deadline.

Under the revised range, investors could offer to sell the notes at a price of between $730 and $890 per $1,000 principal amount, up from $730 to $830 per $1,000 originally. Diamond Triumph said it would also pay accrued interest up to but excluding the date of purchase.

Because of the increase in price, the company cut the maximum amount of notes it will buy to $19 million principal amount from $22 million.

As of 9 a.m. ET on Sept. 15, holders had tendered none of the notes and given consents for $15.1 million principal amount of the notes, 21% of the total.

At that time, Diamond Triumph also pushed back the expiration date to 9 a.m. ET on Sept. 29 from 9 a.m. ET on Sept. 15.

As announced on Aug. 17, the Kingston, Pa., provider of automotive glass replacement and repair services was also soliciting consents to amend the note indenture to eliminate the requirement to file reports with the Securities and Exchange Commission. Diamond will continue to make the information available to noteholders.

The consent solicitation required approval from holders of a majority of the notes. Holders who tender will be considered to have given consents, whether their notes are accepted for purchase or not.

Diamond said it was making the offer as part of a recapitalization. Financing will come from $12.5 million obtained from the sale of shares to chairman Kenneth Levine and borrowings under the company's revolving credit facility.

In addition to the minimum tender requirement, the offer was subject to the receipt of the necessary consents and completion of the recapitalization transactions.

MacKenzie Partners, Inc. is information agent (800 322-2885, banks and brokers call collect 212 929-5500), and U.S. Bank NA is depositary.

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