Ingles Markets launches tender offer for 8 7/8% notes due 2017

By Jennifer Chiou

New York, May 29 - Ingles Markets Inc. announced the start of its cash tender offer for its 8 7/8% senior notes due 2017.

The Asheville, N.C.-based supermarket chain is also soliciting consents from holders to amend the note indenture.

The offer will end at 11:59 p.m. ET on June 25.

Those who tender their notes and deliver consents by 5 p.m. ET on June 11, the consent deadline, will receive the total consideration of $1,049.38 per $1,000 principal amount of notes, including a consent payment of $20.00.

Ingles Markets will also pay accrued interest to the payment date.

Those who tender after the early deadline will not receive the consent payment.

The offer is conditioned upon financing. The proposed amendments are conditioned upon the receipt of consents from holders of a majority of the notes.

Proceeds from the company's planned $700 million senior notes due 2023 (expected ratings B1/BB-) are to be used to fund the tender offer and to fund capital expenditures.

The dealer manager and solicitation agent is BofA Merrill Lynch (888 292-0070 or call collect 646 855-3401). The information agent is D.F. King & Co., Inc. (800 735-3107 or 212 269-5550).

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