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Hercules tenders for any and all 11 1/8% notes due 2008
By Jennifer Chiou
New York, March 8 - Hercules Inc. announced the launch of a tender offer for any and all of its $118.968 million of 11 1/8% senior notes due 2007.
The company also is soliciting consents to amend the notes' indenture to eliminate principal restrictive covenants, certain events of default and other provisions in order to enhance the business, operational and financial flexibility.
The consent deadline is 5 p.m. ET on March 21.
For each $1,000 principal amount of notes, the company will pay an amount based on the present value of $1,000 - the amount payable on Nov. 15, 2007, the stated maturity date - discounted using the yield to maturity of the 3% Treasury due Nov. 15, 2007 and 50 basis points.
The payout includes a consent payment of $20.00 per $1,000 principal amount of notes for those who tender their securities before the consent deadline.
Hercules said it will also pay accrued interest up to but excluding the payment date.
The offer ends at 5 p.m. ET on April 5, unless extended.
The offer is conditioned upon tenders from holders of a majority of the notes, the execution and delivery of a supplemental indenture and the receipt of at least $100 million of net cash proceeds from the sale of Hercules' 51% interest in FiberVisions Delaware Corp. to SPG/FV Investor LLC.
Credit Suisse Securities (USA) LLC (800 820-1653 or call collect 212 325-7596) and Wachovia Capital Markets LLC (866 309-6316 or call collect 704 715-8341) are the dealer managers and solicitation agents.
Mellon Investor Services LLC is the information agent (877 698-6867).
Based in Wilmington, Del., Hercules manufactures and markets specialty chemicals.
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