Avecia ups price range in dutch auction tender for 11% notes

New York, Jan. 10 - Avecia Group plc said it raised the prices at which it will accept offers from investors to sell its 11% senior notes due July 1, 2009 as part of its dutch auction tender offer for the securities.

The new range is $980 to $1,045 per $1,000 principal amount, up from $861 and $990 previously.

As previously, holders who tender by the consent deadline will also receive a consent payment of $10.00 per $1,000 principal amount, regardless of whether their notes are accepted for purchase.

Also as previously, Avecia will pay accrued interest up to but excluding the settlement date.

Avecia announced the offer on Jan. 4, saying the price will be set using a modified dutch auction.

Avecia said it expects to have $459 million available to fund note purchases and make consent payments. As a result, it will not buy all the outstanding notes.

After the consent deadline, Avecia will calculate the amount of consent payments owing to holders who validly tendered and did not withdraw their notes. The remaining amount will be used to make purchases of notes.

The consent solicitation is to amend the note indenture to eliminate or modify certain restrictive covenants and add certain provisions, which would waive the applicability of certain restrictive covenants with respect to the sale of the company's NeoResins business.

The consent deadline is 5 p.m. ET on Jan. 18. The offer expires at 5 p.m. ET on Feb. 1.

The purchase of notes is subject to the valid tender delivery of related consents by holders of at least a majority of the outstanding notes and completion of the sale of the company's NeoResins business.

Goldman, Sachs & Co. is dealer manager (contact Liability Management Group at 212 357-3019). The tender agent is Bondholder Services Corp. (contact Corporate Actions at 212 430-3774) and the Luxembourg tender agent is Kredietbank SA Luxembourgeoise (contact Cecilia Guichart at +352 47 97 39 35).

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