Loehmann's to partly redeem 11% notes

Loehmann's Holdings, Inc. (Caa1) said on Thursday (Sept 12) that it plans to redeem $15 million of its outstanding $26 million of 11% notes. Loehmann's, a Bronx, N.Y.-based apparel retailer, said the notes would be redeemed on Nov. 4 at face value, with payment to be made of accrued interest up to the date of redemption. The company said that the redeemed notes will cease to bear interest after the redemption date.

Hawk offers information on 10¼% '03 notes exchange

Hawk Corp. (B2/B-) filed an amendment to its previously filed Securities and Exchange Commission S-4 filing, offering specific details about the tender offer for its 10¼% senior subordinated notes due 2003 and the related solicitation of noteholder consents to proposed changes in the notes' indenture; that tender offer and consent solicitation had been announced in the earlier filing. In its latest document, Hawk said that the offer to exchange the new notes for existing notes would expire at 5 p.m. ET on Oct. 10, while the consent solicitation deadline would be 5 p.m. ET on Oct. 3, with both deadlines subject to possible extension.

Hawk said that it would exchange $1,025.63 principal amount of newly issued 12% senior notes due 2006 per $1,000 principal amount of the existing notes; that total consideration figure includes a consent payment of $25.63 principal amount of the new notes per $1,000 principal amount of the existing notes, for consents received by the consent payment deadline. Hawk will also pay all tendering holders accrued and unpaid interest, in cash. It said that besides having a different coupon and maturity date, the new notes would have different interest payment dates and a different optional redemption schedule than the old notes and some additional limitations on Hawk's ability to incur debt. Under certain circumstances, the company said it might be required to pay additional interest, which could be paid in the form of additional new notes. The other terms of the new notes will be substantially the same as the old notes (before giving effect to the proposed amendments to the old indenture).

AS PREVIOUSLY ANNOUNCED, Hawk Corp., a Cleveland-based manufacturer of friction products and precision industrial components, said in an S-4 filing with the Securities and Exchange Commission on Aug. 2 that it was beginning an offer to exchange new debt for its $64.725 million of outstanding 10¼% notes and was also soliciting the consent of the noteholders to proposed indenture changes. Hawk said it would exchange the new notes for the existing notes in order to extend the maturity of its debt, although neither the maturity nor the coupon of the proposed new notes was immediately specified in the filing. Hawk said that its domestic subsidiaries would guarantee the payment of interest and principal under the new notes. Hawk also did not formally set an expiration deadline for the offer, nor did it set a deadline for its consent solicitation. It said that the exchange offer and consent solicitation would be subject to the valid tenders of at least a majority of the outstanding notes, and subject to the refinancing of the existing credit facility on terms acceptable to the company and to other customary conditions.

Hawk said that holders tendering their notes would be deemed to have consented to the proposed indenture amendments, which would essentially eliminate all of the restrictive covenants, while holders would have to tender their notes in order to grant consent. It said that holders could withdraw tenders of the outstanding notes at any time before Hawk notifies the trustee for the old notes that it has received valid and unrevoked consents representing a majority of the outstanding notes. Hawk further said that it intends to pay a consent payment for notes tendered by the as-yet-unspecified consent deadline, but it did not specify the amount of that payment in its filing. Any notes which remain outstanding after the expiration of the exchange offer would be subject to the indenture changes, even if the holder did not tender the notes and grant consent. Banc of America Securities will be the exclusive dealer-manager for the exchange offer and consent solicitation; D.F. King & Co. will be the information agent, and HSBC Bank USA will be the exchange agent.

Colt buys back more dollar, sterling, euro notes

Colt Telecom Group PLC (B1/B+) said on Monday (Sept. 10) that it that it had bought back a further £20 million of its bonds at a cost of £11 million. The buyback was the latest of a series of such bond repurchases the company has announced lately. In the latest buyback, Colt said it bought back $15.5 million accreted principal amount of its originally issued $314 million of 12% senior discount notes due December, 2006, bringing the total amount of its repurchases to date to $79.8 million; it bought back £1 million face amount of its originally issued £50 million of 10 1/8% senior notes due November 2007, bringing total repurchases to date to £9 million; it bought back €0.2 million face amount of its €76.7 million of 8 7/8% senior notes due November, 2007, bringing total repurchases to €10.2 million; it bought back €3.7 million face amount of its €306.8 million of 7 5/8% senior notes due July, 2008, bringing total repurchases to €56.4 million; it bought back € 4 million face amount of its €320 million of 7 5/8% senior notes due December, 2009, bringing total repurchases to €55.3 million; it bought back €1.1 million accreted principal amount of its €368 million of 2% senior convertible notes due December, 2006, bringing total repurchases to €91.1 million; and it bought back €4.9 million accreted principal amount of its € 402.5 million of 2% senior convertible notes due April, 2007, bringing total repurchases to €102 million. The company also said that although no further bonds from the following series were bought in the latest transactions, Colt has so far bought back €16.8 million accreted principal amount of its €306.8 million of 2% senior convertible notes due August 2005; and €93.7 million accreted principal amount of its €295 million of 2% senior convertible notes due March, 2006.

AS PREVIOUSLY ANNOUNCED, Colt Telecom, a London-based provider of business and telecommunications services in Europe, has recently bought back dollar-, euro- and/or sterling- denominated bonds on a number of occasions through its Colt Telecom Finance Ltd. subsidiary. Colt said on Feb. 28 that it had purchased dollar-, euro- and sterling-denominated bonds with a total face value or accreted amount of £34 million, for a cash outlay of £13 million. On March 4, Colt said it had made further purchases of £5.9 million (total face value or accreted amount) of outstanding dollar- and euro-denominated bonds, for a cash outlay of £2.2 million. Colt said on March 8 that it had purchased more dollar-, sterling- and euro-denominated bonds with a total face value or accreted amount of £14 million, for a cash outlay of £8 million. On March 18, Colt said that it had bought back a further £9 million of its dollar-and euro-denominated bonds for £5 million of cash. On May 16, Colt said it had purchased a further £10 million of its dollar- and euro-denominated bonds for a cash outlay of £4 million, and on May 20, it bought back a further £14 million of its dollar- and euro-denominated bonds at a cost of £6 million. On May 24, Colt said that it had bought back a further £11 million of its dollar- and euro-denominated bonds at a cost of £6 million. On June 10, Colt said that it had bought back a further £18 million of its dollar- and euro-denominated bonds at a cost of £9 million. On June 19, Colt said that it had bought back a further £2 million of its dollar- and euro-denominated bonds at a cost of £1 million. On June 26, Colt said that it had bought back a further £11 million of its dollar- and euro-denominated bonds at a cost of £5 million. On July 1, Colt said that it had bought back a further £10 million of its euro-denominated bonds at a cost of £4 million. On Aug 1, Colt said that it had bought back a further £13 million of its sterling- and euro-denominated bonds at a cost of £6 million. The company said on each occasion that it has no intention to sell the notes it has purchased, adding that arrangements may be made "in due course" to cancel such notes. Colt also said each time that it may buy additional bonds in the future.

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