Corning tenders for up to $75 million notes, issues make-whole call

By Susanna Moon

Chicago, Oct. 26 - Corning Inc. said it began a cash tender offer for up to $75 million total principal amount of its $75 million of 8.875% debentures due 2021, its $75 million of 8.875% debentures due 2016 and its $100 million of 6.75% debentures due 2013. The notes are listed in order of priority acceptance level.

The company will also redeem $174 million of outstanding debentures, according to a company press release.

Pricing for the notes will be set at 2 p.m. ET on Nov. 8 using the bid-side yield over a reference security plus a fixed spread as follows:

• 1.625% Treasury note due Aug. 15, 2022 plus 140 basis points for the 8.875% debentures due 2021;

• 0.75% Treasury note due Oct. 31, 2017 plus 37.5 bps for the 8.875% debentures due March 15, 2016; and

• 0.75% Treasury note due Sept. 15, 2013 plus 0 bps for the 6.75% notes.

The total purchase price will include an early tender premium of $30.00 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Nov. 8.

The tender offer will end at 11:59 p.m. ET on Nov. 26.

Those who tender their notes after the early deadline will receive the total payment less the early tender premium.

Tendered notes may not be withdrawn after the early tender date.

Holders also will receive accrued interest up to but excluding the settlement date of Nov. 27.

The tender offer is conditioned on completion of financing.

Make-whole call

The company also will redeem two series of outstanding debentures on Nov. 26 at the make-whole redemption amount.

The company will redeem its $100 million 5.9% debentures due March 15, 2014 using a reference Treasury yield plus a spread of 35 basis points and its $73,648,000 6.20% debentures due March 15, 2016 using a reference Treasury yield plus a spread of 40 bps.

J.P. Morgan Securities LLC (866 834-4666 or collect 212 834-4811) is the dealer manager. D.F. King & Co., Inc. (212 269-5550 or 800 967-4607) is information agent and tender agent.

The global glass and display technology company is based in Corning, N.Y.

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