Acindar starts tender for 11¼% notes, other debt

Acindar Industria Argentina de Aceros SA announced a tender offer to purchase its 11¼% notes due 2004 and certain other dollar-denominated debt, including debt held the International Finance Corp. and commercial banks.

The Buenos Aires, Argentina steel company will spend up to $20 million in the offer.

The tender is structured as a modified dutch auction, where holders of notes or debt may make offers within a price range from $450 to $650 per $1,000 principal amount. Tender prices within the price range must be in multiples of $10. Acindar will accept notes and dollar debt validly tendered in the offer in the order of the lowest to the highest tender prices, specified by holders within the price range, and will select the lowest price that will enable the company to purchase notes and dollar debt for the $20 million total.

In addition, Acindar is offering an early tender payment for holders who validly tender and do not withdraw notes or dollar debt prior to April 25. If the offer is completed and the notes and dollar debt are purchased, the holder will receive an extra $50 per $1,000 principal amount.

Notes and dollar debt tendered in the offer may not be withdrawn unless the company extends the expiration date until after June 9, or makes an amendment to the offer that is adverse to any holder that has tendered notes or dollar debt in the offer.

Acindar will not pay any accrued and unpaid interest on any notes or dollar debt that are tendered for purchase.

The offer expires at 5.00 p.m. ET on May 9 unless terminated or extended.

Acindar said it will pay soliciting dealers named in a letter of transmittal a retail solicitation fee of $5 per $1,000 of notes or dollar debt tendered by the holder and accepted in the offer

As of April 7, the principal amount of notes and dollar debt outstanding was $277 million, which includes $100 million of notes and $177 million of dollar debt.

Credit Suisse First Boston LLC (212 538-8474 or 800 820-1653) is dealer manager for the offer, the depositary is JPMorgan Chase and Georgeson Shareholder (banks and brokers call 212 440-9800, others in North America call 800 368-2245, others in Europe and Latin America call +39 06 42 171 777) is information agent.

Acindar said it is currently involved in discussions with an ad hoc committee of its creditors about a restructuring of its debt. The tender offer is prior to the proposed restructuring.

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