Royster-Clark tenders for 10¼% first mortgage notes

By Jennifer Chiou

New York, June 17 - Royster-Clark, Inc. announced a cash tender offer for its 10¼% first mortgage notes due 2009 at a purchase price of 103.417% of the principal amount.

The company will also pay accrued interest up to but not including the redemption date.

The offer is set to expire at midnight ET on July 14, unless extended.

The company is also soliciting consents from noteholders to amend the indenture on the notes. Changes include eliminating some covenants and events of default. Holders who tender will be considered to have delivered consents.

Included in the total is a 2% consent payment that Royster-Clark will pay to holders who tender notes prior to the consent deadline of midnight ET on June 29.

Investors tendering notes after that deadline will receive a price of 101.417% if the notes are accepted.

Terms of the offer require that the company receives sufficient funds from an offering of income deposit securities in Canada to pay the total purchase price for the notes.

CIBC World Markets Corp. is the dealer manager and solicitation agent (800 274-2746 or call collect 212 885-4489) or call D.F. King & Co., Inc., the information agent (800 848-2998 or call collect 212 269-5550).

Norfolk, Va.-based Royster-Clark makes and distributes fertilizer and crop-protection products.

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