American Commercial receives consents for 9½% notes

New York, Jan. 30 - American Commercial Lines Inc. said it received the necessary consents to amend its $119.5 million outstanding principal amount of 9½% senior notes due 2015.

By the consent deadline of 5 p.m. ET on Jan. 30, all the notes had been tendered.

Holders will receive $1,153.89 per $1,000 principal amount at settlement on Jan. 31.

As announced on Jan. 17, the company was soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants, several affirmative covenants and some events of default.

The proposed amendments would also modify the covenants regarding mergers, consolidations and transfers of the company's properties and assets.

The accompanying tender offer was due to expire at 5 p.m. ET on Feb. 14.

For each $1,000 principal amount of notes, the company will pay the present value on the initial settlement date of the $1,047.50 payable on the first call date on Feb. 15, 2010 plus the present value on the initial settlement date of interest that would accrue through the first call date.

The present value will be calculated based on the sum of the yield to maturity on the 3½% U.S. Treasury due Feb. 15, 2010 as of 2 p.m. ET on Jan. 30 plus 50 basis points.

The payout includes a consent payment of $30 for each $1,000 principal amount of notes tendered before the consent deadline.

Global Bondholder Services Corp. is the information agent (866 794-2200), and Merrill Lynch & Co. is the dealer manager (888 654-8637).

American Commercial is a marine transportation and service company based in Jeffersonville, Ind.

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