Rallye to cancel €110.6 million 8½%, 7.7% bonds through tender offer

By Angela McDaniels

Tacoma, Wash., March 25 - Rallye SA said BNP Paribas will purchase €110.6 million of the company's 8½% bonds due January 2015 and 7.7% bonds due November 2016 through its previously announced tender offer, which began March 17.

Bonds bought back by BNP Paribas through the tender offer will be transferred to Rallye and then canceled.

The transaction will reduce the principal amount of the bonds to €389.4 million, according to a company news release.

The tender offer is being funded with proceeds of a €500 million issue of 4% seven-year bonds and will allow the company to extend the average maturity of its bond debt to 4.5 years from 3.1 years as of the end of December.

Banca IMI, BNP Paribas, CM-CIC, Societe Generale, Royal Bank of Scotland and UBS acted as joint bookrunners for the new issue.

BNP Paribas and Royal Bank of Scotland are in charge of the tender offer.

Paris-based Rallye is a food and sporting goods products distributor.

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