Doane Pet Care gets required consents for 10¾%, 10 5/8% notes

By Jennifer Chiou

New York, May 24 - Doane Pet Care Co. said it received the necessary consents to amend its $213 million of 10¾% senior notes due 2010 and $152 million of 10 5/8% senior subordinated notes due 2015. By the consent deadline of 5 p.m. ET on May 25, holders of a majority of the notes had submitted tenders.

The company was soliciting consents to amend the note indenture to eliminate most of the restrictive covenants.

For the 10¾% notes, the price per $1,000 principal amount will be based on the present value of the $1,053.75 redemption price on the first call date of March 1, 2007, discounted using 50 basis points over the bid-side yield on the 3 3/8% U.S. Treasury due Feb. 28, 2007. The total includes a consent payment of $30.00 per $1,000 that will only be paid to those who tender before the consent deadline.

For the 10 5/8% notes, the price per $1,000 principal amount will be based on the present value of the $1,053.13 redemption price on the first call date of Nov. 15, 2010, discounted using 50 basis points over the bid-side yield on the 4½% U.S. Treasury due Nov. 15, 2010. The total includes a consent payment of $30.00 per $1,000 that will only be paid to those who tender before the consent deadline.

Doane Pet Care will also pay accrued interest up to but excluding the settlement date.

The tender ends at 5 p.m. ET on June 12. It started on May 12.

Pricing will be fixed at 2 p.m. ET on the business day after the consent date.

The Nashville, Tenn., maker of dry pet food is carrying out the tender as part of its acquisition by Mars, Inc.

Each of the tender offers is subject to the closing of the acquisition and the receipt of consents from holders of a majority of that series of notes.

Lehman Brothers is lead dealer manager and lead solicitation agent (800 438-3242 or 212 528-7581). CIBC World Markets Corp. and Harris Nesbitt Corp. are co-dealer managers and co-solicitation agents. D. F. King & Co., Inc. is tender agent and information agent (800 487-4870 or 212 269-5550).

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