Steinway receives consents to amend 8¾% notes

New York, Feb. 23 - Steinway Musical Instruments, Inc. said it obtained the necessary consents to amend its $166.2 million of 8¾% senior notes due 2011.

By the consent deadline of 5 p.m. ET on Feb. 22, holders of $114.354 million or 68.81% of the securities had approved the changes.

Settlement of the early tender was scheduled for Thursday. The amendments will go into effect when settlement occurs.

Steinway announced on Feb. 8 it was tendering for the notes, and the Waltham, Mass., musical instrument manufacturer said it was also soliciting consents to amend the notes' indenture to eliminate all of the restrictive covenants and events of default.

The offer expires at 9 a.m. ET on March 9, unless extended.

For each $1,000 principal amount of notes, investors will receive $1,047.85, which includes a consent payment of $4.00 for those who tendered by the consent deadline.

The tender is conditioned upon consent from holders of a majority of the notes and sufficient financing.

Steinway said it intends to use the proceeds of a sale of $175 million of new senior notes to fund the tender.

UBS Securities LLC is dealer manager (888 722-9555 x4210). D.F. King & Co. is the information agent (call collect 212 269-5550 or 800 628-8536).

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