Corus Finance gets consents to buy back 11½% debentures at 110 bps over 4.75% Treasury stock

By Angela McDaniels

Seattle, Feb. 24 - Corus Finance plc said it has obtained the consents needed to buy back its £150 million 11½% debenture stock due 2016 at a level calculated using a spread of 110 basis points over the 4.75% Treasury stock due 2015 on Feb. 28, the price determination date.

Bondholders were asked to approve the change at a meeting on Friday.

The debentures were the subject of a tender offer by the company that ended Friday. Bondholders will receive payment for bonds tendered and bonds redeemed on March 3.

For bonds tendered, Corus will pay a price based on a yield spread of 37.5 bps over the yield on the 4.75% Treasury stock due 2015 on Feb. 28. The company said those who tendered both before and after the early deadline of Feb. 10 will receive the payout.

Corus previously said it would pay a price based on a yield spread of 90 bps over the yield on the 4.75% Treasury stock due 2015 for those who tendered their holdings before the early deadline but subsequently amended the amount on offer.

JPMorgan is dealer manager (contact Francis Burkitt (020 7155 4924); John Cavanagh (020 7742 7506) or Tim Waters (020 7155 8101)). Lloyds TSB Registrars is the tender and tabulation agent (01903 702604).

Corus announced the offer on Feb. 1.

The London-based metal company said it is looking to improve its balance sheet and intends to use cash for the offer.

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