Buhrmann completes 12¼% notes repurchase with new-deal proceeds

New York, July 2 - Buhrmann NV (B2) said it successfully completed its tender offer for its outstanding 12¼% senior subordinated notes due 2009 and the related consent solicitation, which expired as scheduled at midnight ET June 30, without extension.

As of that deadline, noteholders had tendered about $304 million or the bonds, or around 87% of the outstanding amount, and had given their consent to the offer. That left about $46 million of the notes untendered and still outstanding. Buhrmann said it may call these notes as from Nov. 1, or may purchase, redeem or defease the notes July 1.

It said that the premium paid for the early redemption of the tendered notes over the principal amount equals $29 million (exceptional cash interest charge). Previously capitalized financing fees related to the notes are to be written off, which will lead to an exceptional non-cash interest charge of €5 million in 2004.

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 through its Buhrmann US Inc. unit.

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 the 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 NV 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 12¼% notes.

The company said that so far bondholders representing more than 87% of the 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It said that tenders of the 12¼% notes could still be withdrawn and related consents could still be revoked at that point if the tender offer were to be terminated.

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