Appleton solicits consents for 10½%, 11¼% notes related to acquisition

By Toni Weeks

San Diego, June 27 - Appleton Papers Inc. began a consent solicitation to amend the indentures governing its 10½% senior secured notes due 2015 and 11¼% second-lien notes due 2015, according to an 8-K filing with the Securities and Exchange Commission.

The consent solicitation, which expires at 5 p.m. ET on July 10, is in connection with the previously announced equity purchase agreement between Appleton, Paperweight Development Corp., Hicks Acquisition Co. II, Inc. and HH-HACIL, LP as well as the cross purchase agreement between Paperweight Development and Hicks Acquisition, both of which were arranged on May 16.

The consent solicitation is conditioned on Appleton receiving consents from at least a majority in principal amount of each series of notes outstanding as of June 26. If successful, the amendments to the indentures will permit the acquisition of Appleton by Hicks Acquisition in a $675 million transaction. When the transaction closes, Appleton will do business as "Appvion."

Registered holders of the notes as of June 26 that consent to the amendments by the expiration date will receive a consent payment of $1.25 for each $1,000 principal amount of notes.

Jefferies & Co., Inc. (888 708-5831) is the solicitation agent. iDeal LLC (888 593-9546) is the information and tabulation agent.

Based in Appleton, Wis., the company develops coating formulations and coating applications to produce thermal, carbonless and security papers and Encapsys products.

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