Hawk receives tenders of 51.5% of 12% notes by consent deadline

New York, Oct. 15 - Hawk Corp. said it received tenders and consents for $34.13 million principal amount or 51.5% of its $66.3 million 12% senior notes due 2006 by the consent deadline.

As a result, the company had sufficient consents to amend the note indenture.

Hawk announced on Sept. 30 it had begun a cash tender offer for its 12% senior notes.

The Cleveland maker of highly engineered products was also soliciting consents to amend the note indenture.

Hawk is offering to pay par for the notes. Holders who tendered by the consent deadline of 5 p.m. ET on Oct. 14 will also receive a consent payment of $8.79 per $1,000 principal amount.

The tender ends at midnight ET on Oct. 28.

All tendering holders will also receive accrued interest up to but excluding the date of payment.

Holders who tender are required to consent to the indenture amendments that will eliminate substantially all of the restrictive covenants and certain events of default. In addition, holders may not give consents without tendering.

The consent solicitation requires approval of holders of a majority of the notes.

The tender is subject to tenders of a majority of the principal amount outstanding, Hawk obtaining the financing necessary to complete the tender offer and related transactions and other customary conditions.

Jefferies & Co. Inc. is the dealer manager (504 681-5774).

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