Amsted Industries accepts tenders for 98.14% of 10¼% notes

By Laura Lutz

Des Moines, April 5 - Amsted Industries Inc. settled its cash tender offer and consent solicitation for its 10¼% senior notes due 2011.

The company accepted tenders for $245.345 million, or 98.14%, of the outstanding notes by the consent deadline at 5 p.m. ET on March 21. Prior to the tender offer, there was $250 million principal amount of the notes outstanding.

The offer ended at midnight ET on April 4.

The company paid $1,075.60 for each $1,000 principal amount of notes.

That amount is based on the present value of $1,051.25 - the amount payable on Oct. 15, 2007, the notes' first call date - discounted using the bid-side yield of the 4% Treasury due Sept. 30, 2007 and 50 basis points, minus accrued interest.

The payout included a $20.00 consent payment for those who tender prior to the early deadline.

Amsted is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

The company is seeking tenders from a majority of noteholders and the offer is conditioned on sufficient financing.

Citigroup Corporate and Investment Banking is the dealer manager and solicitation agent (800 558-3745 or call collect 212 723-6106). Global Bondholder Services Corp. is the information agent (866 873-7700 or call collect 212 430-3774).

Amsted is a Chicago-based diversified manufacturing company serving the railroad, vehicular and construction markets.

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