American Greetings tenders for any and all of two 7 3/8% notes series

By Jennifer Chiou

New York, Nov. 15 - American Greetings Corp. announced the launch of cash tender offers for any and all of its $221,993,000 of 7 3/8% senior notes due 2016 and any and all of its $32,686,000 of 7 3/8% notes due 2016.

The Cleveland-based greeting card company said it is also soliciting consents to proposed amendments to the note indentures to eliminate substantially all restrictive covenants and certain events of default and shorten the minimum period required to deliver a notice of redemption to holders.

Those who tender will be required to consent to the proposed amendments and vice versa.

The offers will end at midnight ET on Dec. 13.

For each $1,000 principal amount, those who tender prior to 5 p.m. ET on Nov. 29 will receive $1,039.38 for the senior notes and $1,002.50 for the other notes, including a $30.00 consent payment.

American Greetings will also pay accrued interest up to the settlement date.

The company said that it plans to finance the offer with cash on hand and the net proceeds from the issue of new long-term debt.

J.P. Morgan Securities LLC is the dealer manager and solicitation agent (800 245-8812 or 212 270-9153). Global Bondholder Services Corp. is the information agent and depositary (866 804-2200).

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