Saks says $258.4 million 8¼% notes tendered

New York, Nov. 19 - Saks Inc. (B1) said that Global Bondholder Services Inc. - the exchange agent for the company's previously announced offer to exchange cash and new debt for its outstanding 8¼% notes due 2008 - has advised the company that as of 5 p.m. ET on Nov. 18 about $258.375 million of the notes, or around 57.2% of the outstanding amount, had been validly tendered under the terms of the exchange offer.

As previously announced, Saks, a Birmingham, Ala.-based operator of retail store chains, said on Nov. 4 that it would offer to exchange cash and new debt for its $451.55 million of outstanding 8¼% notes, and would solicit noteholder consents to proposed changes in the notes' indenture.

Saks said that the exchange offer would terminate at 5 p.m. ET on Dec. 3, set a now-expired consent deadline of Nov. 18 and set a withdrawal deadline (up until which tenders of the existing notes could be withdrawn at any time) of 5 p.m. ET on Nov. 20, with all deadlines subject to possible extension.

Saks said that it would offer to exchange $333 in cash - including a $20 consent payment for those holders tendering their notes by the consent deadline - and $797 in principal amount of new 7% notes due 2013 per $1,000 principal amount of the 8¼% notes tendered and accepted for exchange.

The company said that holders tendering their 8¼% notes would be required to consent to the proposed indenture amendment. Saks issued $500 million of the 8¼% notes in November, 1999.

Saks said the exchange offer would be subject to customary conditions, including the now-fulfilled condition of receipt by the company of more than $225.775 million in aggregate principal amount of the 8¼% notes (i.e. more than half of the outstanding amount). The proposed indenture amendment would require the receipt of consent from holders of a majority of the outstanding 8¼% notes, a condition which has also been fulfilled, pending the expiration of the withdrawal deadline.

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