Stewart Enterprises buys $298.3 million 10¾% notes in tender

New York, Feb. 22 - Stewart Enterprises Inc. said it completed its tender offer and consent solicitation for its $300 million 10¾% senior subordinated notes due 2008, buying back $298.3 million or 99.4% of the securities.

The tender expired at 5 p.m. ET on Feb. 18.

The response was up marginally from the $298.2 million tendered by the consent deadline.

Stewart announced pricing in the tender on Feb. 4, saying holders who tendered before the consent deadline of 5 p.m. ET on Feb. 2 will receive $1,082.36 per $1,000 principal amount, including a $30 consent payment. Holders who tender after will receive $1,052.36 per $1,000 principal amount.

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

At its previous announcement on Feb. 2, Stewart said it received the necessary consents to amend the note indenture.

By the consent deadline, holders had tendered $298.2 million, or 99.4%, of the notes.

The Jefferson, La., death care company announced on Jan. 20 that it had begun a cash tender offer and consent solicitation for all $300 million of its 10¾% notes.

For each $1,000 principal amount of notes tendered by the consent deadline, Stewart offered the present value on the initial payment date of the $1,053.75 redemption price on the first call date of July 1, 2005, discounted using 50 basis points over the yield on the price determination date of the 1 1/8% U.S. Treasury note due June 30, 2005.

The total includes a $30.00 per $1,000 consent payment that will only be paid to holders who tender by the consent deadline.

The consent solicitation is to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

The offer is subject to conditions, including the receipt of enough debt financing to complete the offer and the receipt of consents from holders of a majority of the principal amount of the outstanding notes.

The information agent is D.F. King and Co. Inc. (call collect 212 269-5550 or 800 659-5550). Banc of America Securities LLC is the dealer manager and solicitation agent (contact High Yield Special Products collect at 212 847-5834 or 888 292-0070).

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