Diamond Triumph extends tender for 9¼% notes, cuts required minimum

New York, Sept. 30 - Diamond Triumph Auto Glass, Inc. said it has extended its modified Dutch auction tender offer for its $72.058 million of 9¼% senior notes due 2008 and reduced the minimum participation it requires.

The expiration is now 9 a.m. ET on Oct. 7, pushed back from 9 a.m. ET on Sept. 29.

In addition, the threshold for the tender to be completed was cut to $8 million from $14 million.

As of the old deadline, holders had tendered $5.5 million or 7.6% of the notes and delivered consents for $20.6 million or 28.6%.

At its last announcement on Sept. 15, Diamond Triumph increased the price on offer and extended the deadline.

Under the revised range, investors may offer to sell the notes at a price of between $730 and $890 per $1,000 principal amount, up from $730 to $830 per $1,000 originally. Diamond Triumph will also pay accrued interest up to but excluding the date of purchase.

Because of the increase in price, the company cut the maximum amount of notes it will buy to $19 million principal amount from $22 million.

As of 9 a.m. ET on Sept. 15, holders had tendered none of the notes and given consents for $15.1 million principal amount of the notes, 21% of the total.

At that time, Diamond Triumph also pushed back the expiration date to 9 a.m. ET on Sept. 29 from 9 a.m. ET on Sept. 15.

As announced on Aug. 17, the Kingston, Pa., provider of automotive glass replacement and repair services is also soliciting consents to amend the note indenture to eliminate the requirement to file reports with the Securities and Exchange Commission. Diamond will continue to make the information available to noteholders.

The consent solicitation requires approval from holders of a majority of the notes. Holders who tender will be considered to have given consents, whether their notes are accepted for purchase or not.

Diamond said it is making the offer as part of a recapitalization. Financing will come from $12.5 million obtained from the sale of shares to chairman Kenneth Levine and borrowings under the company's revolving credit facility.

In addition to the minimum tender requirement, the offer is subject to the receipt of the necessary consents and completion of the recapitalization transactions.

MacKenzie Partners, Inc. is information agent (800 322-2885, banks and brokers call collect 212 929-5500), and U.S. Bank NA is depositary.

© 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.