Samsonite terminates tender for 10¾% notes

New York, May 14 - Samsonite Corp. (Caa1/B-) said it has terminated its previously announced tender offer and consent solicitation for any and all of its outstanding 10¾% senior subordinated notes due 2008. The company cited current market conditions for cancelling the tender offer and for its related decision to withdraw a planned $325 million offering of new bonds whose proceeds would have funded the tender offer.

Samsonite said that all notes which had previously been tendered in the offer will now be promptly returned to their holders and said the proposed amendments to the indenture governing the notes the company had been seeking will not go into effect.

As previously announced, Samsonite, a Denver-based luggage maker, said on April 30 that it had begun a tender offer and consent solicitation for any and all of its $322.861 million of outstanding 10¾% notes.

It set a consent deadline of midnight ET on May 13 and said the offer would expire at midnight ET on May 27, subject to possible extension.

The company said that holders tendering before the consent deadline would have received $1,042.33 per $1,000 principal amount including a $20 per $1,000 consent payment, while holders tendering after that deadline but before the expiration would have received consideration of $1,022.33 per $1,000 principal amount, but no consent payment. Samsonite also would have paid accrued interest up to but not including the date of payment on all tendered notes.

The company had said that tendering holders would have been deemed to have delivered consents to amending the note indentures to eliminate certain covenants and certain provisions relating to events of default and amending certain other related provisions.

Samonsite had said the offer would be subject to conditions including Samsonite having available funds raised in its offering of $325 million of new notes, which was later pulled due to current market conditions.

Deutsche Bank Securities Inc. (call collect 212 240-4270) and Merrill Lynch & Co. (212 449-4914 or 888 385-2663) were dealer managers for the offer to purchase and solicitation agents for the consent solicitation. D.F. King & Co. Inc. was the information agent (800 669-5550).

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