Libbey Glass settles tenders for $360 million 6 7/8% notes due 2020

By Toni Weeks

San Luis Obispo, Calif., April 9 - Libbey Inc. said wholly owned subsidiary Libbey Glass Inc. completed its tender offer for up to $360 million of its $405 million outstanding 6 7/8% senior secured notes due 2020.

The company accepted for purchase $360 million, or roughly 90%, of the outstanding notes. The tender offer ended at 5 p.m. ET on April 8, with settlement occurring April 9. It began on March 12.

Libbey reported that, including early tender premiums and accrued interest, it paid $405.9 million for the notes using the proceeds from a $440 million senior secured term loan B.

According to a previous press release, the company received tenders for $400,406,000 principal amount, or 98.87%, of the notes by 5 p.m. ET on March 25, the consent date.

The company had also solicited consents to amend the notes to eliminate substantially all of the restrictive covenants, modify some events of default and release all of the collateral securing the obligations under the notes. As a result of obtaining the needed consents, Libbey Glass executed a supplemental indenture to the notes, which became operative on April 9 after settlement.

As previously announced, the total purchase price was $1,100 for each $1,000 principal amount of notes tendered by the consent date. The total payment included an early tender premium of $30 per $1,000 principal amount.

Those who tendered after the consent date received $1,070 per $1,000 of notes.

Libbey also paid accrued interest up to but excluding the settlement date.

The company previously said that after completion of the offer, it planned to redeem the $45 million principal amount of notes that remain outstanding at a redemption price of 103% of par plus any accrued interest.

The company said it planned to call the notes on the settlement date.

The offer was conditioned on the completion of a new debt financing and the receipt of the required consents, which have now been satisfied.

Citigroup Global Markets Inc. (800 558-3745 and 212 723-6106 collect) was the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 470-4300 or 212 430-3774 for banks and brokers) was the information and tender agent.

Libbey is a Toledo, Ohio-based glassware manufacturer.

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