Commercial Metals gives final results of tender offer for 5 5/8% notes

By Toni Weeks

San Luis Obispo, Calif., June 4 - Commercial Metals Co. reported the results for its cash tender offer for its outstanding 5 5/8% senior notes due 2013.

According to an 8-K filed with the Securities and Exchange Commission, the company received tenders for $59,965,000, or about 30%, of its $200 million principal amount of notes by 11:59 p.m. ET on June 3, the expiration date for the company's tender offer.

The company also reported that all notes validly tendered prior to 5 p.m. ET on May 17, the consent payment deadline, were accepted for purchase. Payment for these notes occurred on May 20.

An additional $2,000 principal amount of the notes was tendered after the consent payment deadline and prior to the expiration date. These notes were also accepted for purchase and settlement on June 4.

The total purchase price was $1,024.50, including a consent payment of $30.00, per $1,000 principal amount of notes tendered by the May 17 early tender date.

Those who tendered after the early deadline were to receive $994.50 per $1,000 of notes.

Holders also received accrued interest to the settlement date.

In conjunction with the tender offer, Commercial Metals solicited consents to amend the notes to eliminate or modify substantially all of the restrictive covenants, events of default and other note provisions, according to a previous press release.

Holders who tendered their notes were deemed to consent to all of the proposed amendments, and holders could not deliver consents without tendering their notes.

The offer was conditioned on obtaining financing.

According to the filing, Commercial Metals has issued a call to redeem all remaining outstanding 5 5/8% notes. The notes will be redeemed on June 19 at par plus a make-whole premium and accrued interest to the redemption date.

Citigroup Global Markets Inc. (800 558-3745 or collect 212 723-6106) was the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 804-2200 or collect 212 430-3774) was the depositary and information agent.

Commercial Metals manufactures, recycles and markets steel and metal products as well as related materials and services based in Irving, Texas. It began the tender offer and consent solicitation on May 6.

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