American Piping gets early tenders for all of 12 7/8% notes due 2017

By Susanna Moon

Chicago, June 12 – American Piping Products, Inc. said investors had tendered $93,057,000 of its 12 7/8% senior secured notes due 2017 as of 5 p.m. ET on June 11, the consent date.

The tendered notes and related consents represent 100% of the outstanding notes, and the company has entered into a supplemental indenture, which will become operative when the tendered notes are accepted for purchase on June 26, according to a company press release.

As previously announced, the company is soliciting consents to amend the notes to eliminate a significant portion of the restrictive covenants, eliminate certain events of default, release all of the collateral securing the obligations of the company and the guarantors under the notes and amend the number of days prior to a redemption.

The tender offer will end at 9 a.m. ET on June 26. The offer began on May 29.

Tendered notes may no longer be withdrawn.

The total purchase price will be $1,064.38 for each $1,000 principal amount of notes tendered by the consent payment deadline, which includes a consent payment of $5.00.

Holders who tendered their notes after the consent payment deadline would not have received the $5.00 consent payment.

The company will also pay accrued interest up to but not including the settlement date.

Holders who tendered their notes need to consent to the proposed amendments, and holders could not deliver consents without tendering their notes.

The proposed amendments required approval from holders representing at least 66 2/3% of the outstanding notes.

The tender offer and consent solicitation were also contingent on a financing condition.

Houlihan Lokey Capital, Inc. (attn: liability management group at 212 497-7864) is dealer manager and solicitation agent for the tender offer and consent solicitation. D.F. King & Co., Inc. (866 521-4424 or 212 269-5550) is the tender agent and information agent.

St. Louis-based American Piping distributes specialty metal products to the oil and gas, refining and petrochemical, and power-generation industries.

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