E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 4/16/2015 in the Prospect News Canadian Bonds Daily, Prospect News High Yield Daily and Prospect News Liability Management Daily.

Norbord takes in, settles early tenders for 98.86% of 7˝% notes

By Toni Weeks

San Luis Obispo, Calif., April 16 – Norbord Inc. said it received tenders for $311,412,000 principal amount, or 98.86%, of the 7˝% senior secured notes due 2017 issued by subsidiary Ainsworth Lumber Co. Ltd. by the early tender deadline of 5 p.m. ET on April 15 for the company’s tender offer and consent solicitation.

The company also received more than enough consents to adopt the proposed amendments to the indenture dated Nov. 27, 2012 governing the notes. As a result, Ainsworth executed a supplemental indenture that, among other things, eliminated substantially all of the restrictive covenants contained in the indenture, eliminated or modified some of the events of default contained in the indenture, reduced the minimum notice period to holders to redeem the notes to three business days from 30 days and released the liens for the benefit of the holders on the assets that secured the notes.

Ainsworth accepted for purchase and settled on April 16 all notes tendered by the early tender deadline.

The total consideration is $1,042.50 per $1,000 principal amount of notes, which includes an early tender payment of $30.00. Holders who tender their notes after the early tender deadline but before the offer’s expiration date, midnight ET on April 29, will receive $1,012.50 per $1,000 principal amount.

The company will also pay accrued interest.

Tendered notes may no longer be withdrawn.

Norbord also announced that it intends to issue a notice of redemption for all notes that will remain outstanding as of the expiration date.

The company will redeem the remaining notes at 103.75 plus accrued interest to the redemption date, which is expected to be April 30.

RBC Capital Markets, LLC (877 381-2099 or 212 618-7822 collect) is the dealer manager and solicitation agent for the tender offer and consent solicitation. Global Bondholder Services Corp. (866 807-2200 or 212 430-3774) is the information agent and tender agent.

Norbord is a Toronto-based manufacturer of wood-based panel products and oriented strand board.


© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.