Ferro begins tender offer, consent solicitation for 7 7/8% notes

By Angela McDaniels

Tacoma, Wash., July 16 – Ferro Corp. began a tender offer and consent solicitation for its $250 million of 7 7/8% senior notes due 2018, according to a company news release.

The company is soliciting consents to amend the indenture governing the notes. The proposed amendments would eliminate substantially all of the restrictive covenants and some events of default and modify other provisions contained in the indenture.

Holders who tender their notes will be deemed to have consented to the proposed amendments.

For each $1,000 principal amount of notes, the company will pay $1,043.62. This includes a consent payment of $20.00 for each note tendered by the early tender date, 5 p.m. ET on July 30.

The tender offer will expire at midnight ET at the end of Aug. 12.

Following the expiration date, the company plans to redeem any notes that remain outstanding.

In connection with the tender offer and consent solicitation, Ferro intends to enter into a $300 million senior secured first-lien term loan and a $200 million senior secured first-lien revolving credit facility.

The tender offer and consent solicitation are conditioned on the completion of the credit facilities, among other conditions.

The dealer manager and solicitation agent is J.P. Morgan Securities LLC (800 245-8812 or 212 270-1200). The information agent is Global Bondholder Services Corp. (212 430-3774 for banks and brokers; 866 873-7700 for others).

Ferro is a Cleveland-based supplier of technology-based performance materials such as glass-based coatings, pigments and colors and polishing materials.

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