Iron Mountain tenders for 8 1/8% notes

New York, Dec. 4 - Iron Mountain Inc. (B2/B) said that its wholly owned subsidiary Iron Mountain Canada Corp. is beginning a tender offer for all of its $85 million of 8 1/8% senior notes due 2008, which the parent company has guaranteed on a senior subordinated basis. The company is also soliciting noteholder consent to proposed amendments to the notes' indenture.

Iron Mountain Canada set 5 p.m. ET on Dec. 15 as the consent deadline and said the tender offer will expire at midnight ET on Jan. 2, with both deadlines subject to possible extension.

Holders tendering their notes will be required to consent to the proposed indenture amendments, which will eliminate certain restrictive covenants and modify the provisions of the indenture. Holders may not tender their notes without delivering consents or deliver consents without tendering their notes.

Noteholders who validly tender their notes and thus also give their consents to the indenture changes by the consent deadline will receive $1,043.13 per $1,000 principal amount. The total includes a consent payment of $5 per $1,000 principal amount.

Holders who validly tender their notes after the consent deadline but before the expiration will receive the tender offer consideration of $1,038.13 per $1,000 principal amount but will not be eligible to receive the consent payment.

All validly tendering holders will also be paid accrued and unpaid interest up to, but not including, the respective date of payment for their notes.

Iron Mountain Canada said it will finance the tender offer and consent solicitation with a portion of the net proceeds from its previously announced add-on offering of $160 million of new 6 5/8% senior subordinated notes due 2016.

The company said completion of this financing is one of the conditions to its obligations to accept notes for payment.

As previously announced, Iron Mountain, a Boston-based provider of document storage and information management services, redeemed $50 million of the 8 1/8% notes on July 24, out of the $135 million then outstanding, using a portion of the net proceeds from the $150 million of new 6 5/8% senior subordinated notes due 2016 which it sold on June 17.

Iron Mountain said on Dec. 3 that it would sell another $160 million of the 6 5/8% notes in a public offering as an add-on to the existing notes, and would use a portion of the expected net proceeds from the offering to fund the repurchase or redemption of the 8 1/8% notes.

Iron Mountain said that some of the proceeds would also be used for general corporate purposes, including the repayment of a portion of its real estate term loans, the possible repayment of outstanding indebtedness under its revolving credit facility, the possible repayment of other indebtedness and possible future acquisitions and investments.

Bear, Stearns & Co. Inc. is the exclusive dealer-manager and solicitation agent for the tender offer and consent solicitation (contact Global Liability Management Group at 877 696-2327). D.F. King & Co. is the information agent (800 488-8075).

© 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.