Ingles Markets gets tenders for 96% of 8 7/8% subordinated notes

By Jennifer Chiou

New York, May 27 - Ingles Markets, Inc. announced the receipt of tenders for $335.8 million, or about 96%, of its $349.75 million of 8 7/8% senior subordinated notes due 2011.

The tender offer and consent solicitation began April 28 and ended at 11:59 p.m. ET on May 26.

At 5 p.m. ET on May 8, holders had tendered and delivered consents for 76.2% of the notes.

The consents previously allowed the company to execute a supplemental indenture, and the amendments will become operative once the tendered notes are purchased. Ingles Market needed consents from holders of a majority of the outstanding notes.

Noteholders who tendered and provided consents by 5 p.m. ET on May 11, the consent payment deadline, will receive $1,013.69 for each $1,000 principal amount of notes, which includes a consent payment of $20.00. Settlement is slated for June 1.

Noteholders who tendered and provided consents after the consent payment deadline but before the offer expiration will receive $993.69 for each $1,000 principal amount of notes.

The company will also pay accrued interest up to but excluding the payment date.

The offer was subject to a financing condition.

The dealer manager and solicitation agent was Banc of America Securities LLC (888 292-0070 or 980 388-9217), and the information agent was D.F. King & Co., Inc. (800 735-3107 or 212 269-5550).

Ingles Markets is a supermarket chain based in Asheville, N.C.

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