Southern Equipment receives consents needed to amend 9½% notes

By Angela McDaniels

Seattle, Dec. 5 - Southern Equipment Co., Inc. said it received tenders and consents to amend the indenture governing its $150 million outstanding 9½% senior subordinated notes due 2012 from holders of $149.7 million, or 99.8%, of the notes during a consent solicitation that ended on Dec. 4.

The amendments eliminate or amend some restrictive covenants in the note indenture. The supplemental indenture will become operative once the company completes the tender offer for the notes, which began on Nov. 17 and ends at midnight ET on Dec. 15.

For each $1,000 principal amount of notes tendered, the company will pay the present value of $1,047.50, the redemption amount for the notes on their earliest call date on Nov. 1, 2008, plus accrued interest, discounted using the bid-side yield to maturity of the 4.75% Treasury due Nov. 15, 2008 and 75 basis points.

Pricing will be calculated on Dec. 13.

The tender consideration includes a $30.00 consent payment for notes tendered before the consent deadline, and all noteholders who tender will also receive accrued interest.

The company said settlement of the offer depends on the receipt of a senior unsecured syndicated term loan facility of up to $480 million and other conditions.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6108) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 937-2200 or 212 430-3774) is the information agent.

Southern Equipment is a concrete producer based in Raleigh, N.C.

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