Ashland begins cash tender offer for $600 million 3% notes due 2016

By Marisa Wong

Madison, Wis., June 16 – Ashland Inc. said it has begun a cash tender offer to purchase any and all of its outstanding $600 million 3% senior notes due March 15, 2016.

The tender offer will expire at 5 p.m. ET on June 22, according to a press release.

The price payable for each $1,000 of notes accepted for purchase is $1,105.

In addition, holders will receive accrued interest from the last interest payment date, which was March 15, to but excluding the settlement date.

The company said it expects to pay the purchase price and accrued interest in same-day funds promptly after the expiration time.

Holders must tender their notes prior to the expiration time and not withdraw those tenders prior to the withdrawal deadline, which is also 5 p.m. ET on June 22, in order to receive the purchase price.

Ashland said it reserves the right to purchase, from time to time after the expiration date, notes in the open market, in privately negotiated transactions, through tender offers or otherwise.

The tender offer is not conditioned on any minimum amount of notes being tendered but is subject to some other conditions, including a financing condition. Ashland expects to finance the tender offer with a portion of proceeds from a $1.1 billion senior financing expected to close on June 23.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) is the dealer manager with Global Bondholder Services Corp. (866 470-3800) acting as depositary.

Ashland is a chemical company based in Covington, Ky.

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