Royster-Clark accepts $172.22 million 10¼% notes in tender offer, calls remainder

By Jennifer Chiou

New York, July 22 - Royster-Clark, Inc. said it accepted $172,215,000 or 86.1% of its 10¼% first mortgage notes due 2009 tendered before 5 p.m. ET on July 21, the expiration date.

The company also received the required consents to eliminate substantially all of the restrictive covenants and certain events of default contained in the indenture of the notes.

The company also said it will redeem the remaining $27,785,000 of the notes on Aug.22.

The agricultural product retailer, which has headquarters in Norfolk, Va., originally extended its tender offer from midnight ET on July 14.

At that time, holders of $167.215 million or 83.6% of the notes had tendered their securities.

On June 30, Royster-Clark said it had received the necessary consents to amend the notes.

The company announced the tender on June 17, offering 103.417% of the principal amount - including a 2% consent payment for those who tendered before midnight ET on June 29 - plus accrued interest up to but not including the redemption date.

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

The company and its parent Royster-Clark Group, Inc. also announced the closing of a C$325 million initial public offering in Canada.

Royster-Clark sold 32.5 million income deposit securities at C$10.00 per security via subsidiaries Royster-Clark Ltd. and Royster-Clark ULC. It is also offering a greenshoe of 1,681,550 securities.

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