Hexcel tenders for 9 7/8% notes

New York, Jan. 31 - Hexcel Corp. said it has begun a cash tender offer for any and all of its $125 million principal amount of 9 7/8% senior secured notes due 2008.

The Stamford, Conn., advanced structural materials company is also soliciting consents to amend the note indenture to eliminate substantially all the restrictive covenants and release all the collateral securing the obligations of Hexcel and the guarantors.

Noteholders who provide consents by the consent deadline of 5 p.m. ET on Feb. 11 will receive a consent payment of $20.00 per $1,000 principal amount.

The tender offer payment will be calculated on the 10th business day preceding the expiration date of the tender offer using the yield to maturity of the 2.25% U.S. Treasury note due April 30, 2006 plus 50 basis points.

Hexcel will also pay accrued interest up to but excluding the payment date.

The tender ends at 11:59 p.m. ET on Feb. 28.

The tender is subject to conditions including the company obtaining a new senior secured credit facility and borrowing sufficient to fund the tender offer and the receipt of tenders and consents from holders of at least 66 2/3% of the notes.

Credit Suisse First Boston LLC is dealer manager and solicitation agent (800 820-1653 or call collect 212 325-3175). Georgeson Shareholder is the information agent (877 278-6769, brokers and dealers call 212 440-9800).

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