Mueller Water counts early tenders for 7 3/8% notes and 8¾% notes

By Susanna Moon

Chicago, Nov. 21 – Mueller Water Products, Inc. said it has tallied early tenders for its $365 million of 7 3/8% senior subordinated notes due 2017 and its $180 million of 8¾% senior notes due 2020.

Investors had tendered $247,899,000, or 67.9%, of the 7 3/8% notes and $169,964,500, or 94.4%, of its 8¾% notes by 5 p.m. ET on Nov. 20, the consent date, according to a company press release.

The tender offers will end at 12:01 a.m. ET on Dec. 8. The offers began Nov. 6.

Tendered notes may be no longer withdrawn, as of the consent deadline.

As previously announced, the total purchase price for each $1,000 principal amount will be $1,016.04 for the 7 3/8% notes and $1,105.68 for the 8¾% notes.

The total amount includes a consent payment of $30.00 per $1,000 of notes tendered by the consent deadline.

Those who tender after the consent date will receive the total amount less the consent premium.

The company also will pay accrued interest to but excluding the settlement date, which is expected to be Nov. 25 for early tendered notes.

The company is soliciting consents to amend the notes to eliminate or modify substantially all restrictive covenants, events of default and other provisions. The company must secure consents from holders of a majority of each series of notes.

Holders may not deliver consents without tendering the related notes, and they may not revoke their consents without withdrawing the tendered notes.

The tender offers and consent solicitations are conditioned on the company obtaining at least $500 million of proceeds from a new senior secured term loan or other new debt, the receipt of the consents of holders holding at least a majority of each series of outstanding notes and the execution of supplemental indentures to the note indentures.

The company said it intends to redeem any notes that remain outstanding after the tender offers.

BofA Merrill Lynch (888 292-0070 or collect 980 388-3646) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 877 732-3613) is the tender and information agent.

Mueller Water is an Atlanta-based manufacturer and marketer of drinking water transmission, distribution and treatment facilities.

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