Aviall delays tender offer deadline for $200 million 7 5/8% notes

By Laura Lutz

Des Moines, Sept. 11 - Aviall, Inc. extended its previously announced tender offer and consent solicitation for all of its $200 million outstanding 7 5/8% senior notes due 2011 until 5 p.m. ET on Sept. 19.

The offer was originally set to expire on Sept. 12.

The company said it had received tenders for $199.678 million, or 99.8%, of the notes by Sept. 8, up slightly from $199.677 million by Aug. 25.

The company will pay $1,051.51 per $1,000 principal amount, plus accrued interest. The price includes a $30 consent payment for notes that were tendered before the Aug. 25 consent deadline.

Noteholders who tender after the consent deadline will not receive the consent payment.

The price was determined using 50 basis points over the bid-side yield to maturity of the 3.625% U.S. Treasury note due June 30, 2007 as of 10 a.m. ET on Aug. 25, which was 5.159%.

Aviall will also pay accrued interest up to but excluding the payment date.

Those consents allow Aviall to amend the note indenture to eliminate substantially all of the restrictive covenants and some events of default.

The tender offer is conditional on the acquisition of Aviall by Boeing Co., as announced on May 1, and on the receipt of consents from the holders of at least a majority of notes and the amendment of the notes.

Wachovia Securities (704 715-8341 or 866 309-6316) and UBS Securities LLC (203 719-4210 or 888 722-9555, ext. 4210) are the dealer managers and solicitation agents for the tender offer and consent solicitation. The depositary is The Bank of New York Trust Co., NA, and the information agent is D.F. King & Co., Inc. (212 269-5550 or 888 644-6071).

Aviall is a Dallas Fort Worth Airport, Texas-based distributor of commercial and general aftermarket aviation parts.

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