DS Services extends solicitation for 10% notes, ups consent payment

By Susanna Moon

Chicago, Nov. 26 – DS Services of America, Inc. said it again extended the consent solicitation for its outstanding 10% second-priority senior secured notes due 2021.

The company also increased the consent payment to $55.00 per $1,000 principal amount from $10.00 per $1,000 of notes, according to a company press release.

The consent solicitation will now end at 5 p.m. ET on Dec. 1, extended from 5 p.m. ET on Nov. 25 and, before that, 5 p.m. ET on Nov. 20. The solicitation began on Nov. 13 in connection with the company’s merger with Cott Corp.

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

DS Services is soliciting consents to exclude the merger from the definition of change of control, modify covenants to change them from applying to DS Services and some of its subsidiaries to applying to Cott and some of its subsidiaries and reduce incurrence leverage ratios for the debt and lien covenants.

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

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).

The company is an Atlanta-based 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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