Claire's gives early tender update on offer for 9¼% and toggle notes

By Susanna Moon

Chicago, March 15 - Claire's Stores, Inc. said it had received tenders for about $39 million of its 9¼% senior notes due 2015 and about $21.5 million of its 9 5/8%/10 3/8% senior toggle notes due 2015 by the early participation deadline at 5 p.m. ET on March 14.

The company is tendering for up to $210 million principal amount of its $220.27 million of outstanding 9¼% notes and $302,189,620 of outstanding toggle notes.

Claire's purchased the early tendered notes on March 15 using about $63.3 million of proceeds from its $210 million issue of seven-year senior secured first-lien notes, which priced at par to yield 6 1/8% on March 7.

Holders may continue to tender notes until 11:59 p.m. ET on March 28. The offer began on March 1.

For each $1,000 principal amount, the company paid $1,018.00 for the 9¼% notes and $1,018.75 for the toggle notes tendered by the early deadline. The total payouts included an early participation payment of $30.00 per $1,000 of notes.

The company also will pay accrued interest up to but excluding the settlement date.

If holders tender less than $210 million principal amount of notes, the company plans to redeem 9¼% notes and/or toggle notes on or after June 1 in a principal amount of at least $210 million less the principal amount of notes purchased in the tender offer, according to a previous press release. The redemption price would be par plus accrued interest.

If the principal amount of notes tendered is less than $210 million as of the early participation date, holders who tender after the early participation date may be subject to proration, the company previously noted. Holders who tendered by the early participation date will not be subject to proration.

In addition, had the offer been oversubscribed as of the early participation date, the company would not have accepted any notes for purchase after the early participation date.

The tender offer is conditioned on completion of the company's $210 million of 6 1/8% senior secured first-lien notes due 2020, which has now been satisfied. The offer is not contingent on the receipt of any minimum principal amount of notes.

The dealer manager is Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-2476). The information agent and tender agent is D.F. King & Co., Inc. (800 697-6975 or 212 269-5550).

Claire's Stores is a Pembroke Pines, Fla.-based specialty retailer of accessories and jewelry.

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