American Greetings gets consents to amend 7 7/8% notes due 2025

By Marisa Wong

Morgantown, W.Va., March 6 – American Greetings Corp. said that holders of a majority of its outstanding 7 7/8% senior notes due 2025 have delivered consents to some proposed amendments to the notes as of 5 p.m. ET on March 5, the consent payment deadline.

The company said that after receiving the required consents, it has entered into a supplemental indenture reflecting the changes.

As previously announced, the company is tendering for its $17.53 million of outstanding 7 7/8% notes due 2025 and seeking consents to eliminate substantially all of the restrictive covenants, some events of default and other related provisions from the terms of the notes.

The total purchase price will be 88% of par, which includes a consent payment of 0.25% for notes tendered by the consent payment deadline.

The base price will be 87.75% of par for notes tendered after the consent date.

Holders also will receive accrued interest up to but excluding the payment date.

The tender offer will end at 12 a.m. ET on March 20.

Early settlement is expected to be on March 6, and final settlement will be promptly after the offer’s expiration, according to a prior press release.

The offer is subject to some conditions.

Huntington National Bank (614 331-8698 or corporatebondops@huntington.com) is the information and tender agent.

American Greetings is a Cleveland-based greeting card company.

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