Ashland expects to buy 92% of its 3% notes in tender, calls remainder

New York, June 23 – Ashland Inc. said that it anticipates purchasing 92% of its $600 million of 3% senior notes due March 15, 2016 in its tender offer for the securities.

The company also announced that it will redeem all the remaining notes on July 23.

As of 5 p.m. ET on June 22, the offer’s expiration, holders had tendered $514 million of the 3% notes, or 86% of the amount outstanding, according to a company news release.

A further $38 million of notes were tendered under guaranteed delivery procedures. Assuming these notes are delivered, the response will rise to 92%.

Ashland announced the tender offer on June 16, saying it would pay $1,105.00 per $1,000 principal amount of the notes plus accrued interest up to but excluding the settlement date.

The tender offer was subject to a financing condition and other conditions. Ashland expects to finance the tender offer with a portion of proceeds from a $1.1 billion senior financing that was scheduled 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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