Accellent launches cash tender offer for 10½% senior notes due 2013

By Marisa Wong

Madison, Wis., Oct. 14 - Accellent Inc., a wholly owned subsidiary of Accellent Holdings Corp., has started a cash tender offer for any and all of its $295 million of outstanding 10½% senior subordinated notes due 2013, according to a company press release.

The company is concurrently soliciting consents to a proposed amendment to the indenture for the notes. The proposed amendment would eliminate substantially all of the restrictive covenants, certain affirmative covenants, some events of default and some defeasance conditions. It would also eliminate almost all of the restrictions on the company's ability to merge, consolidate or sell its properties or assets contained in the indenture and the notes.

Holders that tender their notes will be considered to have consented to the proposed amendment.

The tender offer will expire at 11:59 p.m. ET on Nov. 10.

The total consideration for notes tendered at or before 5 p.m. ET on Oct. 27, the consent deadline, and accepted for purchase will be $1,030 per $1,000 principal amount of notes, plus accrued interest. The total consideration includes a consent payment of $10 per $1,000 of notes.

Holders of notes tendered after the consent deadline will not be eligible to receive the consent payment.

Notes tendered prior to the consent deadline may be withdrawn and the related consents may be revoked at any time before the consent deadline.

The tender offer and consent solicitation are subject to the receipt of consents from holders of a majority of the outstanding notes and the receipt of proceeds from one or more financings sufficient to repurchase the notes.

Goldman, Sachs & Co. (800 828-3182 or 212 902-5183) is the dealer manager for the tender offer and solicitation agent for the consent solicitation. Global Bondholder Services Cor. (212 430-3774 for banks and brokers and 866 873-5600 for noteholders) is the information agent and depositary.

Based in Wilmington, Mass., Accellent provides manufacturing and engineering services to the medical device industry in the cardiology, endoscopy and orthopedic markets.

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