Ingles gets tenders for $448.3 million 8 7/8% notes, calls remainder

By Angela McDaniels

Tacoma, Wash., June 26 - Ingles Markets, Inc. received tenders and consents from the holders of $448.3 million principal amount, or 78%, of its 8 7/8% senior notes due 2017, according to a company news release.

The remaining notes will be redeemed at 104.438 on July 1.

A tender offer and consent solicitation for the notes began on May 29 and expired at 11:59 p.m. ET on June 25.

In the tender offer, the purchase price is $1,049.38 per $1,000 principal amount of notes. This includes a consent payment of $20.00 for notes tendered with consents by 5 p.m. ET on June 11, the consent deadline.

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

Consents were needed from the holders of at least a majority of the notes in order to make the amendments. A supplemental indenture to effect the proposed amendments to the notes has been executed, and the supplemental indenture will become effective on the settlement date of the tender offer.

The offer was conditioned on financing. On May 29, the company priced $700 million of 5¾% senior notes due 2023, the proceeds of which will be used to fund the tender offer and to fund capital expenditures.

The dealer manager and solicitation agent was BofA Merrill Lynch (888 292-0070 or 646 855-3401). 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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