Alliance One extends tender for convertibles, lifts cap to $60 million

By Susanna Moon

Chicago, Aug. 16 - Alliance One International, Inc. said it again amended the cash tender offer for its $115 million of outstanding 5.5% convertible senior subordinated notes due 2014.

The company is now tendering for up to $60 million of the convertibles, increased from the $30 million offer cap added on July 30. The company originally planned to tender for any and all notes when the offer began July 17.

The offer also will now run until midnight ET on Aug. 29, extended from Aug. 16.

As of 5 p.m. on Aug. 15, investors had tendered $41,232,000 principal amount of the convertibles, according to a company press release.

As previously announced, the company is offering $1,030 per $1,000 principal amount of notes. It will also pay accrued interest to the settlement date.

Alliance One also modified the financing condition on July 30 to specify that the offer is conditioned on the completion, on or prior to the tender offer expiration, of the issuance and sale of $735 million principal amount of 9.875% senior secured second-lien notes due 2021. The note offer is expected to settle Aug. 1.

The tender offer is also conditioned on the redemption of all of the company's 10% senior notes due 2016 and the satisfaction and discharge of the indenture governing those notes prior to Aug. 16 and an amendment to, or replacement of, Alliance One's $250 million senior secured revolving credit facility to permit the redemption of all of the 10% notes, according to a previous press release.

The company had planned to issue $790 million of long-term debt.

As previously reported, the company called the 10% notes on July 1. They will be redeemed at 105 on Aug. 2. The redemption is conditioned on financing.

Deutsche Bank Securities Inc. is the dealer manager (212 250-7527 or 855 287-1922). D.F. King & Co., Inc. is the information agent (212 269-5550 or 800 423-2107).

Alliance One is a Morrisville, N.C.-based leaf tobacco merchant.

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