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Hercules gets required consents for 11 1/8% notes due 2008
By Jennifer Chiou
New York, March 22 - Hercules Inc. announced it received the required consents in its tender offer for any and all of its $118.968 million of 11 1/8% senior notes due 2007.
The company obtained consents from holders of a majority of the notes to amend the indenture, eliminating principal restrictive covenants, certain events of default and other provisions in order to enhance the business, operational and financial flexibility.
Hercules said it intends to execute a supplemental indenture.
The consent deadline was 5 p.m. ET on March 21.
For each $1,000 principal amount of notes, the company will pay an amount based on the present value of $1,000 - the amount payable on Nov. 15, 2007, the stated maturity date - discounted using the yield to maturity of the 3% Treasury due Nov. 15, 2007 and 50 basis points.
The payout includes a consent payment of $20.00 per $1,000 principal amount of notes for those who tendered their securities before the consent deadline.
Hercules said it will also pay accrued interest up to but excluding the payment date.
The offer ends at 5 p.m. ET on April 5, unless extended.
The offer is conditioned upon tenders from holders of a majority of the notes, the execution and delivery of a supplemental indenture and the receipt of at least $100 million of net cash proceeds from the sale of Hercules' 51% interest in FiberVisions Delaware Corp. to SPG/FV Investor LLC.
Credit Suisse Securities (USA) LLC (800 820-1653 or call collect 212 325-7596) and Wachovia Capital Markets LLC (866 309-6316 or call collect 704 715-8341) are the dealer managers and solicitation agents.
Mellon Investor Services LLC is the information agent (877 698-6867).
Based in Wilmington, Del., Hercules manufactures and markets specialty chemicals. The company began the offer on March 8.
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