Teksid Aluminum solicits tenders, consents for 11 3/8% notes

By Laura Lutz

Des Moines, Nov. 16 - Teksid Aluminum Luxembourg Sarl, SCA launched a tender offer and consent solicitation for all of its €240 million outstanding principal amount of 11 3/8% senior notes due 2011.

The company is making the tender offer in connection with its proposed acquisition by Tenedora Nemak, SA de CV, a subsidiary of Alfa, SAB de CV, of Teksid's operations in North America, South America, China and Poland, except for its lost foam operations in Alabama.

The company is seeking consents to amend or eliminate most of the restrictive covenants in the note indenture and the registration rights agreement.

The tender offer will expire at 10 a.m. ET on Dec. 15. The consent deadline is 10 a.m. ET on Dec. 1.

For each €1,000 principal amount of notes tendered before the consent deadline, the company will pay €970, including a €20 consent payment. Notes tendered after the consent deadline will not receive the consent payment.

The company will also pay accrued interest for the notes.

Tenders may be revoked before, but not after, the consent deadline.

Settlement of the tender offer depends on completion of the acquisition, the receipt of consents from holders of a majority of the notes, and some other conditions.

Lazard Freres & Co. LLC (800 LAZ-F144 or 212 632-6000) is the dealer manager and solicitation agent. The Bank of New York and The Bank of New York (Luxembourg) SA (44 207 964-6461) are the information agents.

Based in Carmagnola, Italy, Teksid Aluminum manufactures aluminum engine castings for the automobile industry.

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