Lexington Precision again extends 12¾% note exchange offer

New York, Dec. 9 - Lexington Precision Corp. said that it had again extended the expiration date of its previously announced offer to exchange new units consisting of 11½% senior subordinated notes due August 1, 2007 and warrants to purchase common stock for its existing 12¾% senior subordinated notes, which were to have matured on Feb. 1, 2000.

The offer, which was scheduled to expire at 5 p.m. ET on Dec. 9, was extended to 5 p.m. ET on Dec. 12, subject to possible further extension.

As previously announced, Lexington Precision, a New York-based manufacturer of rubber and metal components for the automobile and medical devices industries, began its original exchange offer for its $27.412 million outstanding 12¾% notes on July 10, 2002. The original expiration deadline was extended numerous times.

The original offer terms were subsequently amended, first on March 7, and then more recently, on Sept. 18. Under the terms of the latter amendment, which is the version of the offer currently in effect, Lexington is offering to exchange units made up of new 12% senior subordinated notes due Aug. 1, 2009, plus warrants, for the existing notes (it raised the coupon on the new exchange notes to 12% from 11½% previously, and extended the maturity to 2009 from the previously announced 2007).

For each $1,000 principal amount of the old notes tendered under the newly revised terms of the offer, noteholders will receive new notes with a principal amount equal to the principal amount of their old notes plus accrued interest on the old notes from Aug. 1, 1999 through the day before the exchange is completed, and will also receive 10 warrants to buy the company's common stock at $3.50 per share, which are good through Aug. 1, 2009.

Lexington also eliminated the $30 per $1,000 participation fee it had previously been offering to pay in the exchange.

The company said the amended exchange would be conditioned on at least 99% by principal amount of the old notes being tendered. It is also subject to Lexington Precision completing new senior secured financing on acceptable terms and the redemption of its other debt on acceptable terms.

As of Sept. 17 under the old offer, Lexington Precision had accepted tenders of $27.209 million of the old notes or 99.3% of the amount outstanding. The company said the four largest holders, representing $20.49 million of the notes, or 74.7% of the outstanding amount, had tendered under the new terms and do not intend to withdraw their notes.

Lexington - which has extended the offer several times since announcing its most recent amendment on Sept. 18 - has not released any updated information on noteholder participation levels.

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