Innovation cancels tender offer, consent solicitation for 9½% notes

By Marisa Wong

Morgantown, W.Va., Aug. 11 – Innovation Ventures, LLC said it has terminated its previously announced cash tender offer for any and all of its outstanding 9½% senior secured notes due 2019 and the related consent solicitation.

Any notes that have been tendered will be promptly returned to holders.

The company has terminated the tender offer and consent solicitation, because it decided not to pursue its previously planned financing transactions, which included an offering of notes and a senior secured credit facility.

The tender offer had begun on Aug. 4 and was set to expire at 11:59 ET on Aug. 31.

The company offered a total consideration of $1,052.50 per $1,000 principal amount to holders who tender their notes by the early deadline of 5 p.m. ET on Aug. 17. Holders tendering after that deadline would have received the total consideration less a $15 early tender premium, amounting to $1,037.50 per $1,000 principal.

In conjunction with the tender offer, the company also solicited consents from noteholders to amendments to the note indenture that would eliminate most of the covenants and some default provisions applicable to the notes.

The tender offer was conditioned upon, among other things, the receipt of at least $900 million from a financing transaction, which has been cancelled.

BofA Merrill Lynch (888 292-0070 or 980 388-3646) was dealer manager for the tender offer and solicitation agent.

Farmington Hills, Mich.-based Innovation Ventures is the producer of 5-hour Energy, a liquid energy drink.

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