| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers H > Headlines for Hercules Inc. > News item |
Hercules sets pricing in tender for 11 1/8% notes due 2008
By Jennifer Chiou
New York, April 4 - Hercules Inc. announced it set pricing in its tender offer for any and all of its $118.968 million of 11 1/8% senior notes due 2007.
For each $1,000 principal amount of notes, the company will pay $1,087.06, which is an amount based on the present value of $1,000 - the amount payable on Nov. 15, 2007, the 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 tendered their securities before the consent deadline at 5 p.m. ET on March 21.
Pricing was determined at 2 p.m. ET on April 3. The reference yield was 4.893%.
Hercules said it will also pay $43.57 for each $1,000 principal amount of notes for accrued interest up to but excluding the payment date.
On March 22, the company obtained consents from holders of a majority of the notes, the required consents to amend the indenture, eliminating principal restrictive covenants, certain events of default and other provisions in order to enhance the business, operational and financial flexibility.
Hercules had said it intends to execute a supplemental indenture.
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. The company began the offer on March 8.
© 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.