DS Services solicits consents for 10% second-priority notes due 2021

By Jennifer Chiou

New York, Nov. 13 – DS Services of America Inc. announced the start of the consent solicitation for its 10% second-priority senior secured notes due 2021 in connection with its merger with Cott Corp.

Cott acquired DS Services for $1.25 billion, and Cott and certain of its subsidiaries will become guarantors of the notes.

DS Services said it is soliciting consents to, among other things, exclude the merger from the definition of change of control, modify existing covenants to change them from applying to DS Services and certain of its subsidiaries to applying to Cott and certain of its subsidiaries and reduce certain incurrence leverage ratios with respect to the debt and lien covenants.

The changes also include entering into an amendment and restatement of the company’s existing collateral agreement.

DS Services is offering a consent payment of $10.00 per $1,000 aggregate principal amount of notes.

The solicitation will expire at 5 p.m. ET on Nov. 20.

D.F. King & Co., Inc. is the paying agent (866 796-6869 or 212 269-5550 for banks and brokers; ds@dfking.com). Questions may also be directed to Barclays (800 438-3242 or collect 212 528-7581).

Based in Atlanta, the company is a national direct-to-consumer provider of bottled water, office coffee and water filtration services. Cott is a beverage company based in Mississauga, Ont., and Tampa, Fla.

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