Holmes buys $85.5 million 9 7/8% notes in tender, calls rest

New York, May 6 - The Holmes Group, Inc. said it bought $85.5 million of its 9 7/8% senior subordinated notes due 2007 in its tender offer.

The company also called the remaining $14.575 million for redemption on June 7.

Holmes also announced it closed on $340 million of senior secured first lien debt made up of a $250 million first priority secured term loan and a $90 million revolving credit facility and an $85 million senior secured second lien term loan.

Holmes had previously extended its tender for the notes to midnight ET on May 5 from midnight ET on May 4 and from midnight ET on April 27 originally.

As of April 30, the company had received tenders of $67.2 million or 82.2% of the $81.775 million of the notes issued in 1997 and all $18.3 million of the notes issued in 1999. That was up from $67.15 million and $81.775 million respectively on April 26.

The company said it has the consents to complete the tender once its new bank financing is in place.

Holmes has sufficient consents to put into effect the proposed indenture amendments. Holmes will execute supplemental indentures incorporating those changes. These supplemental indentures will only become operative if the company accepts the notes for payment under the terms of the tender offer. When the amendments become operative, they will be binding even on holders of notes not tendered for purchase in the tender offer.

Holmes Group, a Milford, Mass., consumer products company, said on March 30 that it had begun a cash tender offer and consent solicitation for all its outstanding 9 7/8% notes. Holmes said it was tendering for the notes as part of a refinancing of its debt.

Holmes said it would offer total consideration of $1,041.14 per $1,000 principal amount of the notes, including a consent payment of $20 per $1,000 principal amount for those notes tendered at or before the consent deadline. Holders would also receive accrued interest on their securities.

Holmes said that under the consent solicitation, it was seeking to eliminate substantially all of the restrictive covenants and certain events of default in the note indenture and to make other amendments.

The company said it expects to repay both the notes and its existing senior secured bank credit facilities with proceeds of a new senior secured credit facility.

The refinancing is being undertaken to take advantage of current market opportunities in advance of the expiration of Holmes' existing senior bank credit facilities beginning in January 2005, the company added.

Credit Suisse First Boston LLC is dealer manager and solicitation agent for the tender offer (800 820-1653 or collect at 212 538-4807). Morrow & Co. Inc. is information agent (800 654-2468 or collect at 212 754-8000).

© 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.