TriMas gets tenders for 88.3% of notes, enough to release collateral

By Susanna Moon

Chicago, Oct. 3 - TriMas Corp. said it received tenders for $176,501,000 principal amount, or 88.3%, its $200 million of 9¾% senior secured notes due 2017 by the consent deadline of 5 p.m. ET on Oct. 2.

The company executed a supplemental indenture to the notes, which will release all of the collateral securing the notes and will eliminate or modify restrictive covenants, according to a company press release. The proposed amendments will become operative when the early tendered notes are purchased on Oct. 11.

The company needed consents from holders of a majority of the outstanding notes to implement the proposed amendments and consents from holders of at least 75% of the outstanding notes to release the collateral.

As noted, holders will receive $1,154.14 per $1,000 principal amount of notes. This amount includes a consent premium of $30.00 for each note tendered by the consent date.

The company will also pay accrued interest up to but excluding the payment date.

Pricing was set 2 p.m. ET on Oct. 2 using a fixed spread of 50 basis points over the bid-side yield of the 0.75% U.S. Treasury note due Dec. 15, 2013. The tender offer yield is 0.712%.

The tender offer began on Sept. 19 and will continue to run until midnight ET on Oct. 17.

The completion of the tender offer is subject to the condition that the company has completed the execution and effectiveness of an amended and restated credit facility and borrowed the funds necessary to complete the tender offer under that facility. It is also conditioned on the execution of a supplemental indenture, which has now been satisfied.

On Sept. 19, Prospect News reported that TriMas launched its $250 million seven-year term loan B with talk of Libor plus 300 bps.

Wells Fargo Securities, LLC (866 309-6316 or collect 704 715-8341) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 758-5880 or banks and brokers call 212 269-5550) is the information agent and tender agent.

TriMas is a Bloomfield Hills, Mich., company that provides applied and engineered products.

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