Libbey tenders, seeks consents for its $306 million floaters due 2011

By Susanna Moon

Chicago, Jan. 25 - Libbey Inc. said its wholly owned subsidiary Libbey Glass Inc. began a cash tender offer to purchase any and all of its outstanding $306 million principal amount of floating-rate senior secured notes due 2011.

Libbey Glass is also soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and modify some events of default.

The tender offer is scheduled to expire at 11:59 p.m. ET on Feb. 22. The consent solicitation will expire at 5 p.m. ET on Feb. 5. Tendered notes may be withdrawn by the consent date.

Holders who tender their notes must also deliver consents.

The total payment is $1,027.50 per $1,000 principal amount, including a $30.00 premium for notes tendered by the consent date.

Libbey also will pay accrued interest to the settlement date.

The offer requires the tender of at least a majority of the outstanding notes by the consent date, the issuance of at least $400 million principal amount of senior secured notes by Libbey Glass, the repayment of Libbey Glass's $80.4 million senior subordinated secured payment-in-kind notes due 2021 and the entry by Libbey Glass into a new senior secured credit facility.

Barclays Capital Inc. (800 438-3242 or collect 212 528-7581) and BofA Merrill Lynch (888 292-0070 or collect 980 388-9217) are the dealer managers and solicitation agents. Bondholder Communications Group, LLC (888 385-2663 or collect 212 809-2663) is the information and tender agent.

The company said on Jan. 22 that its wholly owned subsidiary Libbey Glass intended to repurchase $306 million of its floaters via a tender offer and repay its $80.4 million of senior subordinated secured payment-in-kind notes due 2021.

Funding for the purchase was to come from an upcoming issue of $400 million of senior secured notes due 2015 in a private placement as well as cash on hand.

The company is a Toledo, Ohio-based Libbey operates glass tableware manufacturing plants.

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