Rhodia announces results of tender offer for 7 5/8%, 8%, 10½% notes

By Laura Lutz

Des Moines, Oct. 31 - Rhodia received tenders for 99% of its 10½% senior notes due 2010, 86% of its 8% senior notes due 2010 and 98% of its 7 5/8% senior notes due 2010 after the expiration of its tender offer and consent solicitation for the notes, according to a 6-K filing with the Securities and Exchange Commission.

The offer, which launched on Oct. 2, expired on Oct. 30.

The company accepted tenders for €116.985 million of the 10½% notes, €602.984 million of the 8% notes and $196.943 million of the 7 5/8% notes.

Final settlement is expected on Oct. 31.

For each €1,000 or $1,000 principal amount, the company said it would pay €1,209.52 for the 10½% notes, €1,062.64 for the 8% notes and $1,049.08 for the 7 5/8% notes. The payouts include a €30.00 or $30.00 consent payment for those who tended by the early deadline on Oct. 13.

The payout for the 10½% notes was based on the redemption price on the maturity date and the yield of the 5.25% German Bund due July 4, 2010 plus 50 basis points.

For the 8% and 7 5/8% notes, the price is based on the first call date and a reference security plus 50 bps. The reference security for the 8% notes is the 6% German Bund due July 4, 2007; for the 7 5/8% notes, it is the 3.625% U.S. Treasury due June 30, 2007.

The consent deadline was 10 a.m. ET on Oct. 13 for bonds held through Euroclear or Clearstream and 5 p.m. ET on Oct. 13 for bonds held via DTC. The offer began on Oct. 2.

As of the consent deadline, the Courbevoie, France-based specialty chemicals company said it received tenders from holders of €116.241 million or 99% of its 10½% notes, €601.658 million or 86% of its 8% notes and $196.938 million or 98% of its 7 5/8% notes.

The company was soliciting consents to eliminate substantially all of the restrictive and reporting requirements of the notes.

Pricing was determined at 10 a.m. ET on Oct. 16.

Holders who tender their notes after the consent deadline will receive the same amount, less the consent payment.

The tender offer expires at 10 a.m. ET on Oct. 30. Settlement is expected on Oct. 31.

Credit Suisse, liability management group (London 4420 7883-6748 and New York 800 820-1653 or collect 212 538-0652) is the dealer manager; Bank of New York (44 207 964-6461) is the tender and depository agent; and DF King (800 859-8511 or collect 212 269-5550) is the information agent for the dollar-denominated notes.

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