IESI sets pricing in tender for 10¼% notes

New York, Jan. 6 - IESI Corp. said it set pricing in its tender offer for its $150 million principal amount of 10¼% senior subordinated notes due 2012.

The company will pay $1,187.87 for each $1,000 principal amount based on an expiration date of 9 a.m. ET on Jan. 21. The amount includes a $20 consent payment that will be paid to holders who tender before the expiration.

By 5 p.m. ET on Jan. 5, IESI had received tenders and consents for 99.7% of the notes.

IESI said on Dec. 22 that it had extended its tender offer for its 10¼% notes to 9 a.m. ET on Jan. 21 from 5 p.m. ET on Jan. 7.

Pricing was fixed for 10 a.m. ET on Jan. 6 instead of 10 a.m. ET on Dec. 22.

By 5 p.m. ET on Dec. 21, the company had received tenders and consents for 98.2% of the notes, the same as at 5 p.m. ET on Dec. 10, the last announcement.

On Dec. 10 IESI said it received the necessary consents to amend its 10¼% notes as part of its tender offer and consent solicitation.

The Fort Worth, Texas, solid waste management company said it had executed a supplemental indenture but it will only become operative when it buys the notes.

As announced on Nov. 29, the transaction is part of the company's acquisition by BFI Canada Income Fund.

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

For each $1,000 principal amount of the notes, IESI will pay the present value of $1,051.25 on June 15, 2007, discounted at a rate of 75 basis points over the 3 1/8% U.S. Treasury note due May 15, 2007. The total includes a $20.00 per $1,000 consent payment that will only be paid to holders who tender by the consent deadline of 5 p.m. ET on Dec. 10.

All holders will also receive accrued interest up to but excluding the payment date.

Funding for the tender will come from a public offering by BFI of subscription receipts for ordinary trust units.

The tender is subject to the completion of the merger and the receipt of consents from holders of at least a majority of the principal amount of outstanding notes.

Credit Suisse First Boston LLC is the dealer manager and solicitation agent (800 820-1653 or 212 538-0652). Morrow & Co. Inc. is the information agent (800 607-0088).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.