Appvion accepts tenders for $300.71 million of 10½% secured notes

By Jennifer Chiou

New York, June 28 - Appvion, Inc., formerly Appleton Papers Inc., announced that it has accepted tenders for $300.71 million of its $305 million of 10½% senior secured notes due 2015 in the offer that ended at midnight ET on June 27.

Remaining notes are to be redeemed on July 31 at $1,052.50 per $1,000 principal amount plus interest.

The company also solicited consents to make some proposed amendments that would, among other things, eliminate substantially all of the restrictive covenants and some events of default in the indenture governing the notes; relieve the company of some of its obligations relating to mergers, consolidations or sale of assets; release all of the collateral securing the notes; and modify certain other related provisions.

The total consideration for the 10½% notes is $1,059.68 per $1,000 principal amount of notes validly tendered by the expiration date. Previously, holders were to receive the total consideration for notes tendered by 5 p.m. ET on June 13 and $1,009.68 for notes tendered after the June 13 early consent date but before the expiration date.

The company also paid accrued interest.

According to a news release, a supplemental indenture became operative on June 28.

Appvion also announced that it entered into a $435 million senior secured credit facility.

Earlier in June, the issuer terminated the tender offer for its 9¾% senior subordinated notes due 2014 and the tender offer and consent solicitation for its 11¼% second-lien notes due 2015.

The remaining tender offer was conditioned on, among other things, the receipt of consents from the holders of at least two-thirds of the aggregate principal amount of the outstanding notes (excluding any owned by Appvion or its affiliates) and the receipt of enough funds from some refinancing transactions to cover the tender offer.

The dealer manager and solicitation agent was Jefferies LLC (888 708-5831 or 203 708-5831). The information agent was i Deal LLC (888 593-9546 or 212 849-3880).

Appvion is based in Appleton, Wis., and makes thermal, carbonless and security papers and Encapsys products.

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