Claire's obtains tenders for $20,000 more 9¼% senior notes in offer

By Susanna Moon

Chicago, April 1 - Claire's Stores, Inc. said it received tenders for $20,000 more of its 9¼% senior notes due 2015 since the early participation deadline of 5 p.m. ET on March 14.

The tender offer ended at 11:59 p.m. ET on March 28. The offer began on March 1.

As noted before, the company offered to purchase up to $210 million principal amount of its $220.27 million of outstanding 9¼% notes and $302,189,620 of outstanding 9 5/8%/10 3/8% senior toggle notes due 2015.

Claire's received tenders for about $39 million of its 9¼% notes and about $21.5 million of its toggle notes by the early tender date.

The company 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.

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 paid accrued interest up to but excluding the settlement date.

In a previous press release the company said that if holders tendered less than $210 million principal amount of notes, it planned 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. The redemption price would be par plus accrued interest.

The company also said that it intended to accept for purchase all notes tendered by the early participation date and would only prorate the early tendered notes if the tendered amount exceeded $210 million. If the amount tendered by the early date is less than $210 million, then only holders tendering after the early date would be subject to proration, assuming the total tendered amount exceeds the cap.

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 was 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 was not contingent on the receipt of any minimum principal amount of notes.

The dealer manager was Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-2476). The information agent and tender agent was 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.