Neenah Foundry again tenders for 11% notes

By Jennifer Chiou

New York, Dec. 15 - Neenah Foundry Co. said it launched a tender offer and consent solicitation for its $133.13 million of 11% senior secured notes due 2010.

The proposed amendments will eliminate substantially all of the covenants and some events of default and will subordinated the liens securing the notes to liens securing new debt in addition to the liens to which they are already subordinated.

The consent deadline is 5 p.m. ET on Dec. 27. The tender ends at 5 p.m. ET on Jan. 17.

For each $1,000 principal amount of notes, the company will pay an amount based on the sum of the bid-side yield of the 4% Treasury due Sept. 30 and a fixed spread of 50 basis points. The payout will include a $30.00 consent payment.

The company added it will pay accrued interest up to, but not including, the payment date.

On Nov. 7, the company terminated a previous tender offer and consent solicitation for its 11% notes because some of the conditions of the offer were not met.

Noteholders were to receive $1,098.93 per $1,000 principal amount of notes tendered, which included a cash consent payment of $30.00. Noteholders would also have received interest accrued up to the payment date.

At Oct. 24, the company had received tenders and consents for all of the notes.

When the offer was announced on Oct. 10, the conditions on the offer included the completion of a debt offering and the closing of a new revolving credit facility to fund the offer.

The new offer is conditioned upon tenders from a majority of noteholders and the consummation of a senior secured debt offering as well as the closing of a new revolving credit facility and sufficient funding.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-0652) and Banc of America Securities LLC (888 292-0070 or 704 388-9217) were dealer managers and solicitation agents for the offer. Morrow & Co., Inc. (203 658-9400 or 800 607-0088) was information agent.

Neenah Foundry is a manufacturer of iron castings and steel forgings in Neenah, Wis.

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