Hillenbrand gets tenders for 89.7% of 4½% notes

By Angela McDaniels

Tacoma, Wash., March 31 - Hillenbrand Industries, Inc. said it received tenders from holders of $224.27 million, or about 89.7%, of its $250 million 4½% senior notes due 2009 during a tender offer that expired at 8 a.m. ET on Monday. The offer began on Feb. 29.

As of the early tender deadline at 5 p.m. ET on March 13, holders had tendered $220.91 million, or about 88%, of the notes, according to a previous news release.

Noteholders will receive $1,024.26 for each $1,000 principal amount of notes tendered by the early deadline. The payout was determined at 2 p.m. ET on Wednesday based on the bid-side price of the 2% U.S. Treasury due Feb. 28, 2010 plus 75 basis points.

Notes tendered after the early deadline will receive the same amount, less an early tender premium of $20 for each $1,000 principal amount.

The company said it will also pay accrued interest through the settlement date, which was expected to be Tuesday.

Batesville, Ind.-based Hillenbrand held the offer in connection with the separation of its two primary operating companies: Hill-Rom, its medical technology business, and Batesville Casket, its funeral service business. The separation closed on Monday.

Citi (800 558-3745 or 212 723-6106) and Goldman, Sachs & Co. (877 686-5059 or 212 902-9077) were the dealer managers, and Global Bondholder Services Corp. (866 952-2200 or 212 430-3774) was the information agent.

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