American Achievement Group receives tenders for $275.68 million notes

New York, Oct. 29 - American Achievement Group Holding Corp., AAC Group Holding Corp. and American Achievement Corp. said they received tenders for a total of $275.68 million of their notes by the early tender deadline of 5 p.m. ET on Oct. 29.

The companies will exercise the early settlement option and settle purchases of those notes on Nov. 1.

Holders tendered $44,674,479 of American Achievement Group Holding's 12¾% senior PIK notes due October 2012, $103,356,000 of AAC Group Holding's 10¼% senior discount notes due October 2012 and $127,649,000 of American Achievement Corp.'s 8¼% senior subordinated notes due April 2012.

The offer continues until 11:59 p.m. ET on Nov. 15.

As announced on Oct. 18, the companies are conducting a cash tender offer for the $56,964,791 of outstanding 12¾% notes, $131.5 million of outstanding 10¼% notes and $150 million of outstanding 8¼% notes.

They are also soliciting consents to amend the indentures for the AAC Group Holding notes and the American Achievement Corp. notes to remove substantially all the affirmative and restrictive covenants, certain repurchase rights and certain events of default and related provisions.

The payment on offer is $1,031.88 per $1,000.00 principal amount of the 12¾% notes, $1,003.75 per $1,000.00 principal amount of the 10¼% notes and $1,002.50 per $1,000.00 principal amount of the 8¼% notes.

All the tender prices include an early tender and consent payment of $20.00 per $1,000.00 principal amount. Holders who tender after the early deadline will not receive the $20.00 payment.

Holders of the 10¼% notes and 8¼% notes who tender will be deemed to have delivered consents to the indenture amendments.

American Achievement will also pay accrued interest up to but excluding the settlement date.

To amend the indentures, the companies need consents from holders of a majority of the notes.

Funding for the tender and to repay the company's senior secured credit facility was expected from the proceeds of a debt financing and the issuance of new common or preferred stock and/or warrants to purchase common stock.

Goldman, Sachs & Co. is dealer manager (800 828-3182). The depositary and information agent is Global Bondholder Services Corp. (866 389-1500, banks and brokerages call 212 430-3774).

American Achievement is an Austin, Texas, provider of products such as class rings, yearbooks, graduation products and affinity jewelry.

© 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.