Keystone extends restructuring exchange to give noteholder more time

New York, March 12 - Keystone Consolidated Industries, Inc. said it extended its restructuring exchange at the request of a noteholder who wanted more time to complete their tender.

The exchange will now expire at 5.00 p.m. ET on March 14, 2002, pushed back from 5.00 p.m. ET on March 12.

By 5.00 p.m. ET on March 12, Keystone said $90.58 million of the $100 million 9 5/8% senior secured notes had been tendered for exchange.

In the exchange, the Dallas, Texas fencing and construction products company is offering to exchange its $100 million outstanding 9 5/8% senior secured notes for either a discounted cash amount and common stock (subject to an aggregate limit for holders choosing this option) or new preferred equity and subordinated debt securities or subordinated unsecured debt securities.

Ahead of the formal announcement, Keystone said holders of 92% of the principal amount of the 9 5/8% notes had committed to support the plan for an out-of-court restructuring, Keystone said.

Keystone also said the State of Illinois funded a $10 million grant to the County of Peoria to provide for a $10 million subordinated loan to the company.

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