ARC Document begins tender offer, consent solicitation for 10½% notes

By Marisa Wong

Madison, Wis., Dec. 3 - ARC Document Solutions, Inc. announced that it has begun a cash tender offer for any and all of its outstanding 10½% senior notes due 2016. As of Tuesday, there was $187.7 million principal amount of notes outstanding, according to a press release.

In connection with the tender offer, the company is also soliciting consents from holders of the notes for proposed amendments to the indenture governing the notes. The proposed amendments would eliminate substantially all of the restrictive covenants and some events of default and reduce the minimum redemption notice period to three business days from 30 days.

In order for the proposed changes to take effect, holders of a majority in principal amount of the outstanding notes must deliver their consents.

Holders who tender their notes will be deemed to have delivered their consents to the amendments. Holders may not tender their notes without delivering their consents and vice versa.

The tender offer will expire at 11:59 p.m. ET on Dec. 31.

Holders who tender their notes by 5 p.m. ET on Dec. 16, the consent payment deadline, will receive the total consideration of $1,060 per $1,000 principal amount of notes. The total purchase price includes an early tender and consent payment of $30 per $1,000 of notes.

Any notes tendered after the consent payment deadline but on or prior to the expiration date will be purchased at a price of $1,030 per $1,000 of notes.

In both cases, holders will receive accrued interest from the last interest payment date to, but not including, the applicable settlement date.

Holders may not withdraw tendered notes or revoke consents after the consent payment deadline.

The tender offer is conditioned on the receipt of sufficient proceeds from a new senior secured term loan facility to fund the offer.

J.P. Morgan Securities LLC (212 270-3153) and Wells Fargo Securities, LLC (866 309-6316) are dealer managers and solicitation agents for the tender offer. Wells Fargo Bank, NA will act as the depositary. i-Deal LLC (888 593-9546) is the information agent.

The document solutions company is based in Walnut Creek, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.