Commonwealth Brands tenders for 10 5/8% notes, 9¾% notes

By Jennifer Chiou

New York, Nov. 23 - Commonwealth Brands, Inc. said it launched tender offers for any and all of its $225 million of 10 5/8% senior subordinated secured notes due 2008 and any and all of its $150 million of 9¾% senior secured notes due 2008.

Commonwealth Brands is also soliciting consents to eliminate substantially all of the restrictive covenants and events of default under the notes' indentures as well as to release the collateral for the notes.

Including a $20.00 per $1,000 principal amount of notes consent payment, the company said it will pay $1,142.94 for the 10 5/8% notes and $1,107.65 for the 9¾% notes.

Those who tender their notes before the consent deadline at 5 p.m. ET on Dec. 7, unless extended, will receive the consent payment.

The offers, which expire at midnight ET on Dec. 21, unless extended, are conditioned upon sufficient funds from a new credit facility, tenders from a majority of noteholders and the execution of supplemental indentures.

Deutsche Bank Securities Inc. (212 250-4270) is the dealer manager and solicitation agent. MacKenzie Partners, Inc. is the information agent (call collect 212 929-5500 or 800 322-2885).

Commonwealth Brands is a Bowling Green, Ky., cigarette manufacturer.

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