Hexcel buys all 9 7/8% notes in tender, calls 9¾% notes, 7% convertibles

New York, March 1 - Hexcel Corp. said it completed its tender offer for its 9 7/8% senior secured notes due 2008, buying all $125 million of the notes.

The company also said it has called for redemption all $100 million face amount of its 9¾% senior subordinated notes due 2009 and all $19.25 million face amount of its 7% convertible subordinated debentures due 2011.

Hexcel will pay 103.9% of par plus accrued interest for the 9¾% notes and par plus accrued interest for the convertibles. Both series will be redeemed on March 31.

Funding for the redemptions will come from Hexcel's new term loan and revolving credit facility.

Hexcel previously said on Feb. 11 that it received tenders and consents for 98% of its $125 million principal amount of 9 7/8% senior secured notes due 2008 as of the consent deadline.

Hexcel announced the tender on Jan. 31 and the Stamford, Conn., advanced structural materials company said it 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 provided 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.

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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