Florida East Coast reveals tender offer results through early deadline

By Angela McDaniels

Tacoma, Wash., April 23 - Florida East Coast Holdings Corp. and subsidiary Florida East Coast Railway Corp. announced the initial results of the tender offers for their $170,408,072 of 10½%/11¼% senior PIK toggle notes due 2017 and $475 million of 8 1/8% senior secured notes due 2017, respectively.

Holders had tendered $170,407,976 principal amount, or 99.99%, of the PIK toggle notes and $436,506,000 principal amount, or 91.90%, of 8 1/8% notes as of 5 p.m. ET on April 22, which was the early tender date.

The tender offers began April 9 and will expire at midnight ET on May 6. Settlement for the notes tendered by the early deadline is expected to occur April 23, and the final settlement date is expected to be May 7.

For each $1,000 principal amount, the purchase price is $1,033.61 for the PIK toggle notes and $1,046.72 for the 8 1/8% notes. Each payment includes a $30.00 early tender payment for notes tendered by the early tender date.

Holders will also receive accrued interest up to but excluding the applicable settlement date.

The company said it plans to call for redemption all outstanding notes that are not tendered in the offer.

The tender offers are subject to the completion of a sale of new notes by Florida East Coast Holdings and Florida East Coast Industries, LLC, which has been satisfied. The companies priced $875 million of five-year senior secured notes at par to yield 6¾% and $275 million of six-year senior unsecured notes at par to yield 9¾% on April 15.

The tender offers are not conditioned on the tender of a minimum principal amount of notes, and no consents are being solicited in connection with the offers.

Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) is the dealer manager. D.F. King & Co., Inc. (800 431-9643 or 212 269-5550) is the tender agent and information agent.

Jacksonville, Fla.-based Florida East Coast Holdings owns and operates a 351-mile freight railroad along the east coast of Florida.

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