Corus tenders for 5 3/8% notes with new-deal proceeds

New York, April 30 - Corus Group announced plans for a new debt issue and said that it plans to use the proceeds of the offering to reduce existing borrowings, including to finance a tender offer for the repurchase and payment of accrued interest on its outstanding 5 3/8% euro-denominated bonds due 2006.

It set an early tender deadline for the bonds of 4 p.m. London time on May 18 and said that the offer would expire at 4 p.m. ET on June 4.

Corus, an Anglo-Dutch steel concern, said that it intends to fund the tender by offering some €500 million of senior notes due 2011 to certain eligible investors as part of an effort aimed at extending Corus' debt maturity profile by refinancing existing bonds maturing in the period 2006-2008.

It said the purchase price for the 5 3/8% bonds will be 102.5% of the principal amount of tendered bonds, if they are tendered for purchase by the early tender deadline, plus accrued interest up to but excluding the expected settlement date. The consideration includes an early tender payment of 1% of the principal amount. Holders tendering their bonds after the early tender deadline but before the offer expires will not receive the early tender payment.

Corus said the tender offer is subject to the satisfaction of certain conditions, including Corus obtaining satisfactory financing and obtaining the necessary waiver from its lending banks, as well as other general conditions.

Credit Suisse First Boston (Europe) Ltd. will be the dealer-manager and solicitation agent for the offer.

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