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American Greetings accepts tenders for $16.92 million of 7 7/8% notes
By Marisa Wong
Morgantown, W.Va., March 20 – American Greetings Corp. said holders had tendered a total of $16.92 million, or 96.5%, of its outstanding 7 7/8% senior notes due 2025 as of 12 a.m. ET on March 19, the expiration of its previously announced tender offer.
The total amount tendered includes $15.42 million tendered by 5 p.m. ET on March 5, the consent payment deadline. The early tendered notes had been previously accepted for purchase and settled on March 6.
The company said in the latest news release it expects to accept all of the tendered notes for purchase and to make final payment on March 20.
As announced on Feb. 20, the company was tendering for its $17.53 million of outstanding 7 7/8% notes due 2025 and sought consents to eliminate substantially all of the restrictive covenants, some events of default and other related provisions from the terms of the notes.
Holders of a majority of the outstanding notes delivered consents to the proposed amendments as of the consent payment deadline, as previously reported.
After receiving the required consents, the company entered into a supplemental indenture reflecting the changes.
The total purchase price is 88% of par, which includes a consent payment of 0.25% for notes tendered by the consent payment deadline.
The base price is 87.75% of par for notes tendered after the consent date.
Holders also will receive accrued interest up to but excluding the payment date.
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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