Dynegy receives consents from 90% of noteholders

New York, July 24 - Dynegy Inc. said it obtained consents from approximately 90% of noteholders in its consent solicitation for its senior notes due 2005 and 2006.

As a result, the Houston energy company's Dynegy Holdings Inc. subsidiary has the consents required to eliminate several of the restrictive covenants and certain other provisions currently contained in the note indentures.

Dynegy said that as of the consent deadline of 5.00 p.m. ET on July 24 it had received consents from $279.774 million or 93% of its $300 million 8 1/8% senior notes due 2005, $133.543 million or 89% of its $150 million 6¾% senior notes due 2005 and $169.159 million or 85% of its 7.45% senior notes due 2006.

Dynegy Holdings will execute and deliver supplemental indentures for each series of notes with the amendments that will only become operative when validly tendered notes are purchased under the tender offer.

Completion of the tender offer is conditioned on the proposed capital markets transactions recently announced by Dynegy as part of its long-term refinancing plan.

The tender expires at midnight ET on August 8.

Dynegy is offering tender offer consideration of $1,000 per $1,000 principal amount of the 8 1/8% notes and $980 per $1,000 principal amount of 6¾% and 7.45% notes. All tendering holders will also receive accrued and unpaid interest to but excluding the date of purchase.

Holders who gave their consents will also receive a $20 per $1,000 principal amount consent payment.

MacKenzie Partners, Inc. is the information agent for the tender offer (call 800 322-2885).

Sea Containers 12½% debentures tender offer expires

New York, July 24 - Sea Containers Ltd. (B3/BB-) said that its previously announced offer to exchange new debt for its outstanding 12½% senior subordinated debentures due 2004 expired as scheduled at 5 p.m. ET on July 23 without further extension.

The company said that it had been advised by the exchange agent for the offer that as of that deadline $19.1 million aggregate principal amount of the debentures had been tendered, up from the $18.4 million figure reported on July 9, when the company announced an extension of the exchange offer.

Sea Containers said it has waived the condition requiring at least 50% of the debentures to be tendered, and it is expected that the exchange offer will close on July 29. Upon closing, Sea Containers will cancel the 2004 debentures accepted for exchange and will issue an equal aggregate principal amount of new 12½% senior notes due 2009, which will be listed on the New York Stock Exchange.

Sea Containers further said that it intends to redeem the balance of the 12½% 2004 debentures (approximately $79.9 million principal amount), funding such a redemption either from the net proceeds of asset sales, lower cost bank debt, a sale of new debentures or equity or a combination of the four to achieve the lowest overall cost. The company owns 14.4 million common shares in Orient-Express Hotels which are currently trading at approximately $15 per share. But Sea Containers also said that no further action regarding the 2004 debenture redemption is expected this year.

As previously announced, Sea Containers, a Hamilton, Bermuda-based marine container lessor, passenger and freight transport operator, and leisure industry investor, began its offer to exchange the new 12½% 2009 notes for its $99 million of outstanding 12½% 2004 notes on May 28, although the offering was not publicly announced at that time (it was referred to in passing in subsequent press releases dealing with a separate Sea Containers offer to exchange new 13% senior notes due 2006 for maturing 9½% and 10½% notes, which was completed at the end of June).

Georgeson Shareholder Communications Inc., was the information agent for the 12½% debenture exchange offer (banks and brokers call 212 440-9800; U.S. debentureholders call 866 324-5897; and foreign debentureholders call collect +44 207 335-8700).

GrafTech exchanged stock for senior notes in June and July

New York, July 24 - GrafTech International Ltd. said that it had exchanged approximately 3.8 million shares of common stock for $20 million principal face amount of senior notes, plus accrued interest, in June.

GrafTech, a Wilmington, Del.-based manufacturer of natural and synthetic graphite and carbon based products to industry, said in its earnings announcement for the second quarter ended June 30 that these exchange transactions resulted in a net gain of approximately $1 million in the second quarter.

The company also said that it had exchanged approximately 2.8 million shares for an additional $15 million principal face amount of senior notes, plus accrued interest, in July, resulting in a net gain of approximately $1 million for the 2003 third quarter.

GrafTech said these transactions were based on market prices prevailing in June and July, adding that in continuing its debt reduction efforts, it may "from time to time" opportunistically exchange or purchase senior notes in the open market or privately negotiated transactions on favorable terms.

The company had net debt of $695 million as of June 30, down from $737 million at the end of the previous quarter on March 31.

Ball Corp. to use new-deal proceeds to redeem 8¼% notes

New York, July 24 - Ball Corp. (B3/BB) announced plans to sell $200 million of new senior notes due 2012 in a Rule 144A private placement transaction and to use the net proceeds of the offering, together with other available funds, to redeem its currently outstanding 8¼% senior subordinated notes due 2008.

Ball, a Broomfield, Colo.-based maker of metal and plastic packaging materials for the food and beverage industries, did not outline a likely timeframe for the planned redemption of the $250 million of 8¼% notes.

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