SPX tenders for 6¼% 2011 notes and 7½% 2013 notes

By Paul Deckelman

New York, Feb. 4 - SPX Corp. said it has begun cash tender offers to purchase any and all of its outstanding 6¼% senior notes due 2011 and 7½% senior notes due 2013 and is soliciting noteholder consents to proposed indenture amendments that would eliminate substantially all of the restrictive covenants and certain of the default provisions contained in the indenture.

The company set a consent deadline of 5 p.m. ET on Feb. 17. The tender offers will expire at 5 p.m. ET on March 7, with both subject to possible extension.

SPX, a Charlotte, N.C.-based global provider of technical products and systems, industrial products and services, flow technology, cooling technologies and services, and service solutions, said that the total consideration to be paid for each validly tendered 6¼% note will be based on a 75 basis point fixed spread over the yield to maturity of the reference security, the 5% U.S. Treasury note due Feb. 15, 2011, at the pricing deadline of 2 p.m. ET on March 3, subject to possible extension.

Total consideration to be paid for each validly tendered 7½% note will be based on a 100 basis point fixed spread over the yield of the 3% U.S. Treasury note due Nov. 15, 2007 as of the pricing deadline.

Total consideration for each note series will include a consent payment of $30 per $1,000 principal amount of the notes, payable to those holders who tender their notes by the consent deadline. Holders tendering their notes will be required to consent to the proposed amendments. Holders tendering their notes after the consent time will not receive the consent payment as part of their consideration.

The offer is subject to the satisfaction of certain conditions, including closing of the sale of SPX's Edwards Systems Technology business and receipt by the company of consents related to the required principal amount of notes.

J.P. Morgan Securities Inc. is the lead dealer manager for the offers and lead solicitation agent for the consent solicitations (call 866 834-4666 or call collect at 212 834-3424). Global Bondholder Services Corp. is the information agent (call 866 387-1500, or call collect at 212 430-3774).

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