Dresser receives tenders for 91% of 9 3/8% notes, calls remaining notes

By Angela McDaniels

Seattle, Oct. 31 - Dresser, Inc. repurchased $503 million, or 91%, of its 9 3/8% senior subordinated notes during a tender offer that ended on Monday and will redeem the remaining notes at 104.688% of par plus accrued interest on Nov. 30, according to a company news release.

Roughly $47 million of the notes remain oustanding.

The tender offer expiration was extended from Oct. 23.

A concurrent consent solicitation ended on Oct. 6. The company received sufficient tenders to amend the indenture governing the notes to eliminate many of the restrictive covenants. Now that the tender offer is complete, the amendments have become operative.

Dresser will pay $1,048.13 for each $1,000 principal amount of notes tendered, plus accrued interest up to but excluding the payment date.

The payout includes a $20 consent payment for holders who tendered before the consent deadline.

The company will fund the tender consideration and the upcoming redemption with a portion of the proceeds from its new $935 million senior secured credit facility, which includes a $785 million seven-year term loan and a $150 million six-year revolving credit facility.

Morgan Stanley (800 624-1808 or collect 212 761-5746) was the dealer manager and solicitation agent. MacKenzie Partners, Inc. (800 322-2885 or collect 212 929-5500) was the depositary and information agent.

Dallas-based Dresser provides equipment and services for flow control, measurement systems and compression and power systems to the energy industry.

© 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.