Smurfit-Stone to tender for all 9¼% notes, some 9¾% notes

By Jennifer Chiou

New York, May 22 - Smurfit-Stone Container Corp. said its wholly owned subsidiary, Smurfit-Stone Container Enterprises, Inc., intends to tender for up to all $300 million of its 9¼% senior notes due 2008 and a portion of its $750 million of 9¾% senior notes due 2011.

The company said it plans to repurchase up to $150 million of the 9¾% notes, with the actual level up to that limit being set at $400 million minus the amount of 9¼% notes repurchased.

The tender offer will be conditioned upon the sale of Smurfit-Stone's consumer packaging business as well as the receipt of the requisite consents of the lenders under its credit agreement.

Smurfit-Stone added it plans to purchase the notes with a portion of the proceeds from the previously announced sale of the consumer packaging business.

Smurfit Stone is a Chicago-based manufacturer of paperboard and paper-based packaging.

For each $1,000 principal amount, the company said it will base its payment on the yield of the relevant Treasury plus 50 basis points for the 9¼% notes and added it will pay $1,050.75 for the 9¾% notes, including a $30.00 early tender premium.

Morgan Stanley is the dealer manager (call collect 212 761-1864 or 800 624-1808). D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 800 413-9633).

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