IKON Office Solutions fails to amend 7¾% notes

New York, Jan. 8 - IKON Office Solutions Inc. was unable to obtain the consents needed to amend its $225 million 7¾% senior notes due 2015 despite increasing the consent payment to $20 per $1,000 principal amount of notes.

The solicitation expired at 5 p.m. ET on Jan. 5.

However IKON noted that it will still be able to continue its share repurchase program and purchase from $75 million to $100 million of its common stock during fiscal 2007, as previously communicated. The additional share repurchase capacity sought by the consent solicitation was intended to provide for enhanced flexibility which, while desirable, is not required by the company to continue its share repurchase program, IKON explained.

The consent solicitation began on Nov. 30 and was originally set to end on Dec. 8. It was extended three times.

The company had been seeking consents from holders of at least a majority of the notes in order to amend certain provisions of the indenture governing the notes.

Wachovia Securities is the solicitation agent (704 715-8341 or 866 309-6316), and D.F. King & Co. Inc. (212 269-5550 for banks and brokers or 800 290-6426 toll free) is the information agent and tabulation agent.

IKON is based in Malvern, Pa., and provides products and services that help businesses manage document workflow.

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