Unifrax extends, increases payment for 7½% notes consent solicitation

New York, July 18 – Unifrax I LLC said it increased the payment on offer in its consent solicitation for its 7½% senior notes due 2019 and extended the deadline.

The company is now offering to pay $22.50 per $1,000 principal amount for consents, up from $10.00 per $1,000 previously.

In addition, the solicitation will now expire at 5 p.m. ET on July 28, pushed back from 5 p.m. ET on July 18.

The company also made an addition to the proposed amendments, requesting an amendment to the restricted payments covenant in the note indenture.

Unifrax announced the solicitation on July 10, saying it was seeking consents from holders of at least a majority of notes to:

• Permit an affiliate’s proposed purchase of about 29% of the outstanding shares of Shandong Luyang Share Co., Ltd.;

• Allow Unifrax to include in the calculation of EBITDA contained in the indenture certain costs, fees and expenses incurred in connection with the solicitation and certain amendments to the company’s existing credit facility;

• Remove any requirement to provide pro forma or historical financial information regarding Shandong Luyang; and

• Provide for a possible permanent prepayment of amounts outstanding under Unifrax’s existing credit facility in connection with an escrow agreement.

Unifrax said the consent payment will be settled on two dates. Half will be paid promptly following the consent deadline and the remaining 50% will be paid following the satisfaction or waiver on or prior to May 31, 2015 and Unifrax receiving financing in an amount sufficient to fund the investment in Shandong Luyang.

Goldman Sachs & Co. is the solicitation agent (800 828-3182 or call collect 212 902-6941). D.F. King & Co., Inc. is the information agent (212 269-5550 for banks and brokers or 800 714-3312).

The issuer is a Tonawanda, N.Y.-based supplier of high-temperature insulation products. Unifrax Holding Co. is the co-issuer of the notes.

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