Laidlaw extends tender for 10¾% notes, ups pricing

New York, June 16 - Laidlaw International, Inc. said it has again extended the deadlines in its tender offer for its $403.5 million of 10¾% senior notes due 2011 and increased the prices on offer.

Pricing for the tender will now be set at 2 p.m. ET on June 17 instead of 2 p.m. ET on June 16, the consent deadline will be 5 p.m. ET on June 20 instead of 5 p.m. ET on June 16, and the expiration will be 5 p.m. ET on July 1 instead of 5 p.m. ET on June 30. The tender was previously extended earlier in the day Thursday.

In addition, pricing will now be based on a spread of 50 basis points instead of 75 basis points and the consent payment will be increased to $30.00 per $1,000 from $20.00 - although the consent payment is already included in the amount calculated using the fixed spread.

By 5 p.m. ET on June 15, holders had tendered $145 million of notes.

Laidlaw said earlier on June 16 that it had extended the deadlines by 24 hours.

The Naperville, Ill., school bus, inter-city bus and public transit company announced the tender on June 1 as part of a recapitalization that also includes the future redemption of Greyhound Lines, Inc.'s $150 million 11½% senior notes due 2007 and $5 million 8½% convertible debentures due 2007 and replacement of its existing revolving credit facility.

For each $1,000 principal amount of notes tendered by the consent date, Laidlaw will pay the present value on the initial payment date of the $1,053.75 per $1,000 principal amount redemption price on the first call date of June 15, 2007 plus the interest payments up to June 15, 2007, discounted using a spread of 50 basis points - reduced from the original 75 basis points - over the 4.375% Treasury note due May 15, 2007.

Laidlaw is offering a consent payment of $30.00 per $1,000 principal amount - up from $20.00 - to holders who tender and deliver consents by the consent date.

The consent solicitation is to eliminate substantially all of the affirmative and restrictive covenants and certain events of default and related provisions in the note indenture.

Laidlaw needs consents from holders of at least a majority of the notes.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and UBS Securities LLC at (888 722-9555 x4210 or 203 719-4210) are dealer managers and solicitation agents. D.F. King & Co. is information agent (800 431-9645 or 212 269-5550).

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