Secunda extends tender for $125 million floating-rate notes

New York, Oct. 3 - Secunda International Ltd. again pushed back the tender deadline in the ongoing tender offer and consent solicitation for its $125 million outstanding senior secured floating-rate notes due 2012, this time to 5 p.m. ET on Oct. 12 from 5 p.m. ET on Oct. 3.

The expiration date, originally set for July 28, had already been extended to Aug. 11, Sept. 12 and Oct. 3.

The early settlement date is now Oct. 4 and Secunda may buy any notes tendered after that time.

As previously reported, all of the notes were tendered by the consent deadline on July 12.

The consents allow the company to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

Following a price increase on July 28, the company will pay a fixed amount of $1,045.00, plus accrued interest, per $1,000 principal amount of notes. That price includes a $30.00 consent payment.

On July 14, the company had set the offer price at $1,043.58, including the $30.00 consent payment. That price was based on a tender offer yield of 5.658% - 50 basis points more than the comparable U.S. Treasury.

The tender began on June 26.

The offer is subject to some conditions, including the receipt of tenders from holders of a majority of the notes, a new credit facility or other financing that provides sufficient cash to fund the tender offer and consent solicitation and the successful pricing of the initial public offering of the company's common shares in Canada.

Secunda had also been making an annual reduction offer for up to $3.8 million of the notes. That expired on Sept. 29 with no securities tendered.

That offer, announced Aug. 1, applied to any notes not tendered in the company's ongoing tender offer and consent solicitation for the same securities. It was required under the note indenture.

In the annual reduction offer, the company would pay the principal amount plus accrued interest up to the date of payment for the notes.

Banc of America Securities LLC is the dealer manager and solicitation agent for the ongoing tender offer (call High Yield Special Products collect at 212 847-5836 or 888 292-0070). D.F. King and Co., Inc. is the information agent for both offers (call collect 212 269-5550 or 800 758-5378).

Secunda is a Dartmouth, Nova Scotia, offshore oil services company.

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