Unifi begins tender offer, consent solicitation for 6½% notes

By Angela McDaniels

Seattle, April 28 - Unifi Inc. has begun a tender offer for its 6½% notes due 2008 and a consent solicitation to amend the indenture governing the notes, according to a company news release.

The consent solicitation will expire at 5 p.m. ET on May 11, and the tender offer will expire at midnight ET on May 25, unless either is terminated or extended.

Noteholders may not tender without submitting consents and vice versa.

The proposed amendments would eliminate substantially all of the restrictive covenants and certain events of default and modify the procedures and restrictions related to defeasance of the notes.

The company said it will pay par per each $1,000 principal amount of notes tendered, which includes a $30.00 consent payment for noteholders who tender and consent before the consent deadline.

Noteholders who tender will also receive accrued interest up to but excluding the payment date.

Unifi said the tender offer is subject to the receipt of tenders for a majority of the notes, the execution of amendments to its existing secured revolving credit facility and the receipt of net proceeds of a debt financing sufficient to finance the tender offer.

Lehman Brothers Inc. (800 438-3242 or 212 528-7581) is dealer manager and solicitation agent, and D.F. King & Co. Inc. (212 269-5550 for banks and brokers or 800 714-3313) is information agent.

Greensboro, N.C.-based Unifi is a diversified producer and processor of multi-filament polyester and nylon textured yarns and related raw materials.

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