American Color gets needed consents for non-interest bearing notes, 10% notes

By Susanna Moon

Chicago, June 13 - American Color Graphics, Inc. said it received the required consents to extend the maturity date of its non-interest bearing senior second secured notes due 2008 and for an interest payment forbearance related to its 10% senior second secured notes due 2010.

The consent solicitation expired at 5 p.m. ET on June 12.

Holders of $14,979,300 in principal amount of the 2008 notes, or 98.5% of the outstanding amount, agreed to extend the maturity of the notes to Sept. 15, 2008 from June 15, 2008.

Holders of $247,333,000 in principal amount of the 2010 notes, or 88.3%, agreed to be precluded through Sept. 15 from exercising certain rights and remedies under the indenture due to failure to make the interest payment on the notes and the continuance of default for 30 days.

The consent solicitation required consents from at least 75.1% in principal amount of the outstanding 2010 notes, according to a press release.

In connection with the solicitation, on March 3 the company entered into a credit facility with Special Situations Investing Group, Inc., as administrative agent, and certain other lenders to provide for term loans of up to $8 million.

Lehman Brothers is the solicitation agent; Ipreo is the information agent; and Bank of New York Trust Co., NA is the tabulation agent.

On Nov. 16, holders of more than 92.5% of American Color Graphics' 10% notes agreed to defer the semiannual cash interest payment due on the notes on Dec. 15 to March 15.

American Color Graphics is a Brentwood, Tenn.-based print and premedia company.

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