American Greetings holders tender $204.84 million 7 3/8% notes so far

By Angela McDaniels

Tacoma, Wash., Nov. 30 - American Greetings Corp. had received tenders for more than three-quarters of its $221,993,000 of 7 3/8% senior notes due 2016 and $32,686,000 of 7 3/8% notes due 2016 as of the early tender deadline in the tender offers that began Nov. 15.

Holders had tendered $180,328,000 principal amount, or 81.23%, of the senior notes and $24,514,000 principal amount, or 74.98%, of the other notes as of 5 p.m. ET on Nov. 29, according to a company news release.

On Nov. 30, the company accepted for payment all of the notes tendered through the early tender deadline. For each $1,000 principal amount, it paid $1,039.38 for the senior notes and $1,002.50 for the other notes, including a $30.00 consent payment.

The tender offers remain open until midnight ET on Dec. 13. Holders who tender after the early tender deadline and before the final deadline will receive $1,009.38 per senior note and $972.50 per other note.

All holders who tender are receiving accrued interest up to but excluding the applicable settlement date.

The company is also soliciting consents to proposed amendments to the note indentures to eliminate substantially all restrictive covenants and some events of default and shorten the minimum period required to deliver a notice of redemption to holders.

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

The company has received the needed consents from holders of each series of notes and entered into supplemental indentures amending each of the indentures governing the notes effecting the amendments.

The Cleveland-based greeting card company is financing the offer with cash on hand and the proceeds of its $225 million issue of 7 3/8% senior notes due 2021, which settled on Nov. 30.

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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