Iron Mountain holders tender $306.3 million 8 3/8% notes by early date

By Susanna Moon

Chicago, Aug. 22 - Iron Mountain Inc. said investors had tendered $306.3 million of its outstanding $550 million 8 3/8% senior subordinated notes due 2021 by the early tender deadline of 5 p.m. ET on Aug. 21.

The company will accept the notes for purchase with a proration factor of 45% because the amount of tendered notes exceeds the maximum repurchase amount of $137.5 million, according to a press release.

Settlement was set for Thursday, with funding to come from the company's $600 million 6% senior notes due 2023 issued on Aug. 13.

As announced on Aug. 8, the total purchase price will be $1,097.50 for each $1,000 principal amount of notes tendered by early tender date. The total payment includes an early tender premium of $30 per $1,000 of notes.

Those who tender after the early deadline would have received $1,067.50 per $1,000 of notes.

The tender offer was scheduled to end at midnight ET on Sept. 5.

Tendered notes may no longer be withdrawn, as of the early tender date.

Holders also will receive accrued interest to but excluding the settlement date.

Iron Mountain originally said that it may but is not obligated to increase the maximum repurchase amount.

The offer was conditioned on completion of financing, which was satisfied.

In a previous press release, the company said it planned to price a $450 million public offering of U.S. dollar-denominated senior notes due 2023 and C$300 million of subsidiary Iron Mountain Canada Operations ULC's Canadian dollar senior notes due 2023.

Proceeds from the sale were slated to fund the tender offer, to redeem all of the company's 8% senior subordinated notes due 2018 and 8% senior subordinated notes due 2020 and to redeem the Canadian issuer's outstanding 7½% senior subordinated notes due 2017. Remaining proceeds will be used to repay debt under the company's revolving credit facility and for general corporate purposes.

Wells Fargo Securities, LLC (866 309-6316 or collect 704 410-4760) is the dealer manager. D.F. King & Co., Inc. (800 431-9633 or collect 212 269-5550) is the information agent and tender agent.

Iron Mountain is based in Boston and provides information management services.

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