Associated Materials starts tender for notes

New York, March 22 - Associated Materials Inc. announced a tender offer and consent solicitation for its 9¼% senior subordinated notes due March 1, 2008.

The Dallas, Texas building products company said the tender is part of the recently announced transaction under which Harvest Partners Inc. will take it private.

Associated Materials, which has $75 million of the notes outstanding, is offering to buy the notes at an amount based on a yield to March 1, 2003 equal to 50 basis points over the yield on the 4¼% Treasury note due March 31, 2003. March 1, 2003 is the first optional redemption date on the notes.

The amount will be reduced by the $20 consent payment but Associated Materials will pay accrued interest up to but not including the payment date.

The purchase price for the notes will be fixed at 2.00 p.m. ET on April 16 unless extended. The tender offer expires at midnight ET on April 18.

Holders tendering their notes will be required to consent to amendments eliminating or modifying most of the restrictive covenants and modifying other provisions.

A consent payment of $20 per $1,000 principal amount will be paid to holders who tender by 5.00 p.m. ET on April 4.

The tender is subject to the acquirer buying a majority of Associated Materials' common stock and the arrangement of new financing.

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