Colt Defense accepts tenders for $2.84 million of 8% notes due 2021

By Sarah Lizee

Olympia, Wash., May 18 – Colt Defense LLC announced the final results of its cash tender offer to purchase any and all of its outstanding $8,476,516 of 8% fourth-priority secured notes due 2021 and the related solicitation of consents, according to a press release.

By the expiration time, 5 p.m. ET on May 15, holders of $2,838,767, or roughly 33.49% of the outstanding principal amount, of the notes, had tendered their notes under the offer. The company said it expects to accept all notes tendered under the offer.

The company did not receive the required consents from holders to some amendments to the indenture governing the notes. As such, the indenture will not be amended.

The expiration time had been extended three times, from 5 p.m. ET on May 11, from 5 p.m. ET on April 27 and from 5 p.m. ET on April 13.

As previously reported, as of 5 p.m. ET on April 10, holders of $2,671,341 of the notes, or about 31.51% of the outstanding principal amount, had tendered their notes under the offer.

The early tender time was 5 p.m. ET on April 10, extended from 5 p.m. ET on March 27 and, before that, from 5 p.m. ET on March 13.

The withdrawal deadline was 5 p.m. ET on April 10, extended from 5 p.m. ET on March 27.

The tender offer and consent bid were launched on March 12.

For holders who tendered their notes by the early tender time and delivered their consents, the company is offering a total consideration of $0.25 per $1.00 principal amount of the notes tendered, which includes $0.225 as the tender offer consideration and $0.025 as an early tender payment.

Holders who validly tendered their notes after the early tender time but on or prior to the expiration time will receive the tender offer consideration of $0.225 per $1.00 principal amount but will not receive the consent payment.

The company was seeking consents to, among other things, eliminate substantially all of the restrictive covenants and some events of default under the terms of the notes, release the collateral securing the notes and shorten the notice required to be given to holders of notes in the case of a redemption of the notes.

Ipreo LLC (212 849-3880 for banks and brokers or 888 593-9546 for all others) is acting as solicitation agent and information agent.

Colt Defense is a West Hartford, Conn., manufacturer of firearms.

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