Huntington Ingalls receives early tenders for 66.6% of 6 7/8% notes

By Susanna Moon

Chicago, Dec. 2 – Huntington Ingalls Industries, Inc. said it settled early tenders for $399.4 million principal amount, or about 66.57%, of its outstanding 6 7/8% senior notes due 2018 on Tuesday.

The tender offer will continue until 11:59 p.m. ET on Dec. 15. The offer began on Nov. 17.

As of the consent payment deadline at 5 p.m. ET on Dec. 1, holders had tendered more than a majority of the outstanding notes and, as a result, the company entered into a supplemental indenture to the notes, according to a company press release.

As previously announced, the company is soliciting consents to eliminate or modify most of the covenants, events of default and other provisions contained in the notes indenture.

The total purchase price was $1,052.16 for each $1,000 principal amount, including a consent payment of $30.00 for notes tendered by the consent date.

Those who tender their notes after the consent deadline will receive $1,022.16 per $1,000 of notes.

Holders will also receive accrued interest up to but excluding the settlement date, which will be Dec. 16 for remaining tenders.

Tendered notes may no longer be withdrawn, as of the consent deadline.

D.F. King & Co., Inc. (866 620-2538, 212 269-5550 for banks and brokers or email hii@dfking.com) is the information agent. Credit Suisse Securities (USA) LLC (attn: liability management group, at 212 538-2147 or at 800 820-1653) is the dealer manager and solicitation agent.

The company said it plans to call any notes not tendered in the offer.

The tender offer and consent solicitation are conditioned on completion of a debt financing with enough proceeds, along with cash on hand, to fund the offer.

The company priced $600 million of seven-year senior notes on Nov. 17, as previously reported, with proceeds to be used to refinance its senior notes due 2018.

Based in Newport News, Va., Huntington Ingalls Industries designs, builds and manages the life-cycle of nuclear and conventionally powered ships for the U.S. Navy and the U.S. Coast Guard.

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