Ingles Markets gets consents to amend 8 7/8% notes ahead of deadline

By Marisa Wong

Madison, Wis., June 11 - Ingles Markets Inc. said that holders of its 8 7/8% senior notes due 2017 had tendered and delivered consents for $300 million principal amount, or 52%, of the outstanding notes as of 5 p.m. ET on June 10.

Because the company received the required consents from a majority in principal amount of the notes, it executed a supplemental indenture to effect the proposed amendments to the notes, according to a Tuesday press release.

The supplemental indenture will become effective on the settlement date of the tender offer.

Holders still have until the consent deadline at 5 p.m. ET on June 11 to tender to receive the total consideration of $1,049.38 per $1,000 principal amount of notes, including a consent payment of $20.00, the company said in the release.

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 remains open and will end at 11:59 p.m. ET on June 25.

The Asheville, N.C.-based supermarket chain began the tender offer on May 29.

As noted before, the offer is conditioned upon financing. On May 29 the company priced $700 million of 5¾% senior notes due 2023, proceeds of which will be used to fund the tender offer and to fund capital expenditures. Those notes will settle on June 12.

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

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