Alaris obtains consents for 96% of notes, extends deadline

New York, June 6 - Alaris Medical Inc. said it obtained consents from holders of more than 96% of its notes and added that it is extending the consent deadline.

The consent solicitation will now end at 5.00 p.m. ET on June 20, the expiration date for the tender offer. Previously the solicitation was due to expire at 5.00 p.m. ET on June 5.

Alaris said the consents received are enough to allow it to make the proposed amendments to the indentures of Alaris Medical Systems Inc.'s 11 5/8% senior secured notes due 2006 and 9¾% senior subordinated notes due 2006 and Alaris Medical's 11 1/8% senior discount notes due 2008 and to the security documents for the 11 5/8% notes.

As previously announced, holders of the 9¾% senior subordinated notes validly tendering their notes and delivering consents will receive $1,037.50 per $1,000 principal amount, including a $20 per $1,000 principal amount consent payment.

Holders of the 11 1/8% senior discount notes validly tendering their notes and delivering consents will receive $1,053.75 per $1,000 principal amount at maturity, including a consent payment of $20 per $1,000 principal amount.

And following a previously announced increase, holders of the 11 5/8% will receive $1,220 per $1,000 principal amount, including a $20 per $1,000 principal amount consent fee.

The San Diego, Calif. medical safety company said the tender offers and consent solicitations are being made in connection with a proposed recapitalization of parent Alaris Medical Inc. and subsidiary Alaris Medical Systems. This recapitalization would take advantage of the company's improved operating results and the current interest rate environment, and would involve the several concurrent transactions:

Alaris Medical Inc. is making a public offering of $210 million new senior subordinated notes and obtaining a new secured credit facility for up to $235 million of term loans and a $30 million revolving credit facility.

It is also making a public offering of 9.1 million shares of common stock, plus up to a 15% over allotment option exercisable by the underwriters comprising 900,000 shares to be sold by the company and 450,000 shares to be sold by shareholders.

Bear, Stearns & Co. Inc. (877 696-2327) and Citigroup Global Markets Inc. (800 558-3745) are dealer managers and solicitation agents. Mellon Investor Services LLC (917 320-6286 or 866 323-8166) is the information agent.

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