ISS investors tender €45.52 million 8 7/8% notes due 2016 in offer

By Susanna Moon

Chicago, July 5 - ISS A/S said investors had tendered €45,517,000 of its €581.5 million of 8 7/8% senior subordinated notes due 2016 by the end of the offer at 12:01 p.m. ET on July 4.

The partial redemption was conditioned on the result of an excess proceeds offer, and ISS will thus redeem an aggregate €186,459,000 principal amount of the notes, according to a company press release.

Upon settlement and the partial redemption of the notes on July 8, an aggregate €349,524,000 principal amount of notes will remain outstanding.

"Following the closing of the sale of our pest control activities in 12 countries, we are now moving ahead with a partial redemption of some of our outstanding notes," Henrik Andersen, group chief financial officer, said in the July 5 press release.

"As earlier announced we have decided to use the proceeds from this divestment to further deleverage ISS. As we are using the proceeds against the most expensive part of our debt, this deleverage will eliminate interest payments of more than DKK 150 million annually."

The company said on June 3 that it began a cash tender offer for some of the 8 7/8% notes. The company had completed an asset sale and planned to apply the excess proceeds of €234,734,000 to purchase the maximum amount of notes it could purchase at a price of par plus accrued interest plus an additional amount.

The company also announced the conditional redemption of €231,312,000 of the notes if, after the expiration for the tender offer, no notes were tendered in the offer.

As previously noted, the condition for none of the notes being tendered could be waived based on the tender offer results.

If the condition for none of the notes tendered was satisfied, the redemption would have occurred on July 8 at 101.479 plus accrued interest of €3,022,316, after which €350,188,000 of the notes would have remained outstanding. The company designated July 5 as the record date for the redemption.

Bank of New York Mellon, London Branch is the paying agent for the redemption.

ISS is a Copenhagen-based facility services provider, including cleaning, property, catering, support, security and management services.

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