Buhrmann sets price for 12¼% notes tender

New York, June 29 - Buhrmann NV (B2/B) said it had set the price it plans to pay noteholders under its previously announced tender offer for its outstanding 12¼% senior subordinated notes due 2009.

Basing the pricing on the yield to maturity of a reference security, the 7¾% U.S. Treasury note due Nov. 15, 2004 (the YTM was 1.532% as of June 28), Buhrmann accordingly anticipates that each noteholder who tendered their by the consent deadline of 5 p.m. ET June 16 will receive total consideration of $1,095.596 per $1,000 principal amount of notes tendered and accepted for purchase by the company. Each noteholder who tendered after the consent deadline will receive consideration of $1,085.596 per $1,000 principal amount but will not receive the additional $10 per principal amount consent payment.

Buhrmann said the tender offer is expected to close at midnight ET June 30 and the settlement date for the tender offer is expected to be July 1, with both deadlines subject to possible extension.

As previously announced, Buhrmann, an Amsterdam-based office supplies provider, said on June 3 that it planned to buy back the $350 million of outstanding 12¼% notes, which were issued by its Buhrmann US Inc. subsidiary.

It said that the tender offer would expire at midnight ET June 30, subject to possible extension.

Buhrmann said it expected to obtain the funds necessary to consummate the tender offer through an offer and sale of new debt securities, borrowings under its credit facility and cash on hand.

It said that the tender offer was subject to a number of conditions, including the company's ability to obtain financing on acceptable terms and conditions, and its receipt of tenders and consents to the proposed indenture changes from a required amount of noteholders.

On June 21, Buhrmann announced plans to issue $150 million of new 10-year senior notes and to use the proceeds of the Rule 144A offering to repurchase the outstanding 12¼% notes.

The company said that up to that point, bondholders representing more than 87% of the 12¼% notes had tendered their notes in the offer and had given their consents to proposed indenture amendments. As a result, the company said the indenture amendments had become effective, fulfilling one of the major preconditions for repurchasing the notes.

It said that tenders of the 12¼% notes may be withdrawn and related consents may still be revoked if the tender offer is terminated.

High-yield syndicate sources said on June 28 that Buhrmann had successfully priced $150 million of new 8¼% senior subordinated notes due 2014.

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