Momentive tenders, seeks consents for Hexion floating notes due 2014

By Susanna Moon

Chicago, Jan. 16 - Momentive Specialty Chemicals Inc. said it began a cash tender offer for the outstanding $120 million principal amount of second-priority senior secured floating-rate notes due 2014 issued by its wholly owned subsidiaries Hexion U.S. Finance Corp. and Hexion Nova Scotia Finance, ULC.

The company is also soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and release the collateral securing the notes, according to a company press release.

The total purchase price will be $1,002.50 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Jan. 30, the early tender date.

The total payment includes an early tender payment of $30.00 per $1,000 of notes.

Those who tender after the early deadline will receive the tender payment of $972.50 per $1,000 of notes.

Holders also will receive accrued interest to but excluding the payment date.

The tender offer will end at midnight ET on Feb. 13.

Tendered notes may be withdrawn by the early tender deadline.

The tender offer is conditioned upon the issue of new debt to fund the offer.

JPMorgan (800 245-8812 or collect 212 270-1200) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 470-3700 or, for brokers and banks, 212 430-3774) is the information agent.

Momentive is a Columbus, Ohio-based producer of thermosets and adhesive and structural resins and coatings.

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