Ipsco tenders for 8¾% notes

By Jennifer Chiou

New York, June 18 - Ipsco Inc. announced the start of a cash tender offer for any and all of its 8¾% senior notes due 2013.

The Lisle, Ill., steel producer is also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and modify certain other provisions.

The offer is linked to SSAB Svenskt Stal AB's previously announced agreement to acquire Ipsco.

For each $1,000 principal amount of notes, Ipsco said it will determine its payout using the present value of $1,043.75, the redemption price of the notes on their first call date of June 1, 2008, discounted using the yield to maturity of the 4 7/8% Treasury due May 2008 and a fixed spread of 50 basis points, minus any accrued interest to, but not including, the settlement date.

The payout will include a $15.00 consent payment for those who tender by the consent deadline.

The company added that it will also pay accrued interest to the settlement date.

The consent deadline is 5 p.m. ET on June 29. The tender ends at 5 p.m. ET on July 17.

The offer is conditioned upon the receipt of consents from holders of at least a majority of the notes and the closing of SSAB's acquisition.

J.P. Morgan Securities Inc. is the dealer manager (866 834-4666). Global Bondholder Services Corp. is the information agent (call collect 212 430-3774 or 866 470-4300).

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