Vantico completes restructuring, including exchange offer for 12% '10 notes

New York, July 1 - MatlinPatterson Global Opportunity Partners announced the completion of the previously announced restructuring of Vantico Group SA (Ca), and the transfer of the business to HMP Equity Holdings, its partnership with Huntsman LLC.

Matlin Paterson said Huntsman now has full operational and financial control of the business and has renamed it Huntsman Advanced Materials. It will be managed as part of Huntsman's Polyurethanes and Specialties Division.

The restructuring involved the exchange of a significant amount of debt for equity, including the previously announced exchange by Vantico of cash or common equity interests for its approximately $250 million of outstanding 12% senior notes due 2010. That exchange offer concluded as scheduled at 9 a.m. London time on June 30, with no further extension.

MatlinPatterson said that disposal of that debt, as well as CHF150 million in new cash being put into the business, restores the business' balance sheet to full health. The initiative gives MatlinPatterson and Huntsman approximately 90% ownership of the business. Various stakeholders own the remaining 10%.

As previously announced, Vantico, a Luxembourg-based and manufactures polymer and adhesives, said on May 29 that it had begun the exchange offer for the 12% notes on May 16, and had also obtained an extension on waivers from its bank lenders enabling it to complete its restructuring.

The company said the initial deadline was 5 p.m. London time on June 16 (this was subsequently extended).

It said that note holders could elect to receive €300 in cash or 5.1 common equity interests in the company per €1,000 in principal amount of notes tendered. The noteholders who choose the equity exchange offer can subscribe for additional equity in the company.

The company said the exchange would be is conditioned upon the successful completion of a refinancing of the existing senior bank debt and the achievement of a 99% threshold of acceptance by noteholders, with the company already holding 73% of the notes, having received them from MatlinPatterson Global Opportunities Partners, LP and SISU Capital Ltd., members of the ad hoc committee of holders.

The ad hoc committee provided a bridge facility of up to €50 million to Vantico as part of the restructuring, and borrowings will be repaid to the extent possible with available liquidity when the restructuring closes. The remainder of the bridge equity will be terminated, on the basis that each €1 million of outstanding principal and accrued interest under the facility will be converted into 0.4% of the units to be outstanding after completion ofthe exchange offer, equity private placement and the bridge equity.

The company said that at the completion of the restructuring, MatlinPatterson would hold 60% of the equity and was expected to transfer that stake to HMP Equity Holdings Corp., which is jointly owned by MatlinPatterson and the Huntsman family.

The exchange is being carried out as a private offering only to noteholders who are not U.S. citizens, or who are U.S. citizensthat are accredited investors as defined by the Securities Act of 1933, as amended.

Maxim/Anthony Crane extends exchange offer for 10 3/8% ' 08 notes, 13 3/8% ' 09 debentures

New York, July 1 - Maxim Crane Works (C) again extended its previously announced exchange offer and consent solicitation for the 10 3/8% senior notes due 2008 of its Anthony Crane Rental, LP and Anthony Crane Capital Corp. subsidiaries and the 13 3/8% senior discount debentures due 2009 of Anthony Crane Rental Holdings, LP and Anthony Crane Holdings Capital Corp, the name under which Maxim formerly did business.

The offer has now been extended to 12:01 a.m. ET on July 8, subject to possible further extension, from the prior deadline of 12:01 a.m. ET on June 28.

The company said that holders of 94.2% of the senior notes and all of the senior discount debentures had delivered their waivers and consents, unchanged from previously announced holder participation levels.

As previously announced, the Pittsburgh-based crane rental company is offering new notes in exchange for its senior discount debentures; the new notes would initially pay 12 5/8% annual interest on a PIK (payment-in-kind) basis through Feb. 1, 2004. After that, interest would accrue at the annual rate of 9 3/8% and would be paid in cash.

It also said that its Anthony Crane Rental LP subsidiary had begun a similar offer to exchange new 9 3/8% senior notes due 2008 for its outstanding 10 3/8% senior notes due 2008.

Maxim originally said that it would pay holders of its senior notes a total $1.8 million as a consent fee, although it subsequently raised that to $2.21 million; It will pay a total consent fee to holders of its senior discount debentures of $190,000.

The depositary for the exchange offer is U.S. Bank NA.

© 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.