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Chattem tenders for 8 7/8% notes
New York, Feb. 10 - Chattem, Inc. said it has begun a cash tender offer and consent solicitation for any and all its $204.538 million outstanding principal amount of 8 7/8% senior subordinated notes due 2008.
The Chattanooga, Tenn. manufacturer of branded consumer products said it will pay $1,036.73 per $1,000 principal amount to holders who tender their notes before the consent deadline of 5 p.m. ET on Feb. 24. The price includes a consent payment of $30 per $1,000 principal amount.
Holders who tender after the consent deadline but before the expiration date of midnight ET on March 9 will receive $1,006.73 per $1,000 principal amount.
In both cases holders will receive accrued interest up to but not including the date of payment.
The consent solicitation is to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.
Chattem needs the consent of holders of a majority of the principal amount of the notes.
Holders may not tender without delivering consents or give consents with tendering.
The offer is subject to conditions including the receipt of tenders of a majority of the principal amount of the notes outstanding, completion of the required financing, consent from the lenders under the Chattem's credit facility and other customary conditions.
Chattem plans to fund the tender with proceeds from a long-term debt financing.
Banc of America Securities LLC (contact High Yield Special Products at 888 292-0070 or call collect 704 388-4813) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 470-4200 or call collect 212 430-3774) is the information agent.
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