Amscan starts tender for 9 7/8% notes

New York, April 2 - Amscan Holdings Inc. said it has begun a cash tender offer and consent solicitation for its $110 million principal amount of 9 7/8% senior subordinated notes due 2007.

The company is offering to pay $1,032.92 per $1,000 principal amount for notes tendered by the expiration date of midnight ET on April 29.

Holders who tender before the consent deadline of 5 p.m. ET on April 15 will receive an additional $2.50 per $1,000 principal amount for a total of $1,035.42.

In both cases holders will also receive accrued interest up to but excluding the date of payment.

Notes cannot be tendered without delivering consents. The consent solicitation is to amend the note indenture to eliminate substantially all of the affirmative and restrictive covenants, certain repurchase rights and certain events of default and related provisions contained in the indenture.

Amscan, an Elmsford, N.Y., maker of decorative party goods, said it intends to finance the tender offer and consent solicitation with part of the debt and equity financing arranged in connection with its merger with a subsidiary of AAH Holdings Corp., a company affiliated with Berkshire Partners LLC and Weston Presidio.

Completion of the merger is one of the conditions to completing the tender offer.

Goldman, Sachs & Co. is the dealer manager and solicitation agent (contact the Credit Liability Management Group at 877 686-5059). Bondholder Communications Group is the information agent (888 385-2663).

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