Interface gets tenders for $141.86 million 11 3/8% notes, $98.52 million 9½% notes

By Devika Patel

Knoxville, Tenn., Dec. 3 - Interface, Inc. said investors tendered and delivered consents for $141.857 million, or 94.57%, of the company's 11 3/8% senior secured notes due 2013 and $98.523 million, or 89.57%, of its 9½% senior subordinated notes due 2014 as part of a tender offer and consent solicitation for $150 million of the 11 3/8% notes and $110 million of the 9½% notes.

The tenders were all accepted and the company paid about $280.6 million for these notes, which will be funded through a $275 million private offering of 7 5/8% senior notes due 2018 and cash on hand.

Following the tender, $8.143 million of 11 3/8% notes and $11.477 million of 9½% notes remain outstanding.

The tender offer, which launched on Nov. 3, expired at 11:59 p.m. ET on Dec. 2.

As previously reported, the company was also soliciting consents to eliminate substantially all of the restrictive covenants and some events of default in the indentures governing the notes. It received the needed consents to adopt these amendments and the supplemental indenture has been executed, the company said in a press release on Nov. 18. These changes took effect when the company paid for the tendered notes on Dec. 3.

For each $1,000 principal amount of notes, holders will receive $1,230 for the 11 3/8% notes and $1,030 for the 9½% notes. These amounts include a premium of $30 for each note tendered by the early tender deadline.

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

The dealer managers were Merrill Lynch, Pierce, Fenner & Smith Inc. (888 292-0070 or 980 388-9217), Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Wells Fargo Securities, LLC (866 309-6316 or 704 715-8341). The information agent was Global Bondholder Services Corp. (866 470-3800 or 212 430-3774).

Interface makes modular carpet and is based in Atlanta.

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