North Atlantic Trading again extends tender offers for 11½%, 19% notes

By Susanna Moon

Chicago, Jan. 8 - North Atlantic Trading Co., Inc. said it again extended the cash tender offers to purchase any and all of its $205 million outstanding principal amount of 11½% senior secured second-lien notes due 2016 and $86,528,000 outstanding principal amount of 19% senior secured third-lien notes due 2017.

The tender offers will now end at 5 p.m. ET on Jan. 10, extended from 5 p.m. ET on Jan. 7, 5 p.m. ET on Dec. 31 and, before that, 11:59 p.m. ET on Dec. 26. The offer began on Nov. 27.

The company said it expects to settle the tender offers promptly after they end.

The tally still remains unchanged as of the early consent deadline of 5 p.m. ET on Dec. 11.

As previously announced, investors had tendered $168.8 million principal amount, or 82.3%, of the 11½% second-lien notes and $84.9 million principal amount, or 98.1%, of the 19% third-lien notes as of the early consent date.

The company received consents from holders of more than a majority of the outstanding notes and executed a supplemental indenture to each series of notes, which will become operative when the tendered notes are settled, as already noted.

The proposed amendments eliminate substantially all of the restrictive covenants and some events of default and shorten the redemption notice to five days from 30 days.

The total purchase price for each $1,000 principal amount will be $1,094.44 for the 11½% notes and $1,156.86 for the 19% notes tendered by the early consent date.

The total payment per $1,000 of notes includes consent payments of $94.44 for the 11½% notes and $156.86 for the 19% notes.

The company will also pay accrued interest.

North Atlantic previously said that it planned to call for redemption all of the remaining notes after the offer at a price for each $1,000 principal amount of $1,086.25 for the 11½% notes and $1,142.50 for the 19% notes.

The company previously said it expected to use the net proceeds of one or more debt financing transactions, including one or more bank loans, to finance the offer, which is contingent on financing.

Questions may be directed to the company at 508 778-4421. Global Bondholder Services Corp. is the tender agent and information agent (866 470-3800 or 212 430-3774 for banks and brokers).

North Atlantic Trading is a Louisville, Ky.-based manufacturer and marketer of tobacco products.

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