Pentair tenders for its 7.85% notes due 2009

By Susanna Moon

Chicago, July 8 - Pentair, Inc. said it began a cash tender offer for all of its outstanding $250 million 7.85% senior notes due Oct. 15, 2009.

The tender offer will expire at midnight ET on Aug. 4. The early tender date is 5 p.m. ET on July 21.

The total payment will be based on the 2 7/8% U.S. Treasury note due June 30, 2010 plus a fixed spread of 265 basis points.

Holders who tender their notes by the early tender date will receive a premium of $30 per $1,000 principal amount of the notes.

The settlement date is expected to be Aug. 5. The early settlement date is expected to be July 22.

Pentair said the purpose of the tender offer is to buy back the outstanding notes to reduce interest costs.

Funding for the redemption will be drawn from the company's credit facility.

Banc of America Securities LLC (888 292-0070 or collect at 704 683-3215) is the dealer manager. Global Bondholder Services Corp. (866 952-2200 or 212 430-3774) is the information agent.

Pentair is a diversified industrial manufacturing company based in Golden Valley, Minn.

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