Rhodia seeks tenders, consents for $420.88 million of 10¼% notes

By Laura Lutz

Washington, Feb. 1 - Rhodia launched a cash tender offer and consent solicitation for all of its $420.875 million outstanding principal amount of 10¼% senior notes due 2010, according to a 6-K filing with the Securities and Exchange Commission.

The company is seeking consents to amend the note indenture to eliminate substantially all of the restrictive and reporting covenants.

For each $1,000 principal amount of notes, the company will pay an amount based on the yield of the 3 5/8% U.S. Treasury due June 15, 2010 plus 50 basis points. Pricing will be determined at 10 a.m. ET on Feb. 15.

The payout includes a $30.00 consent fee for each $1,000 principal amount of notes tendered before the consent deadline at 5 p.m. ET on Feb. 14. Notes tendered after the early deadline will receive the same amount, less the consent fee.

The tender offer will expire at midnight ET on March 1.

Credit Suisse (800 820-1653 or collect 212 538-0652) is dealer manager. D.F. King & Co. Inc. (800 859-8511 or collect 212 269-5550) is the New York tender agent and the information agent, and The Bank of New York (Luxembourg) SA (44 0 20 7964 6705) is the Luxembourg tender agent.

Rhodia is a Courbevoie, France-based specialty chemicals company.

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