Chattem ups payment in consent solicitation for 7% notes, extends deadline

By Laura Lutz

Des Moines, July 19 - Chattem Inc. increased the payout in its solicitation of consent from holders of its $107.5 million 7% senior subordinated notes due 2014 to $50.00 per $1,000 principal amount, up from the $40.00 consent fee set July 13.

As well as the larger payment, Chattem added an amendment to the consent solicitation that would adjust to 2.5:1.0 the fixed charge coverage ratio that it must meet before the company and its guarantors can incur certain types of indebtedness or issue certain types of securities.

Alongside these changes, Chattem extended the solicitation until 5 p.m. ET on July 25. The deadline, originally set for July 14, had previously been extended to July 18.

As previously reported, the consent solicitation asks holders to permit an $85 million increase in the company's capacity to make restricted payments, including repurchasing common stock.

The solicitation was launched on June 26 with a $15.00 per $1,000 principal amount consent fee.

Questions can be directed to Wachovia Securities (liability management group at 704 715-8341 or 866 309-6316). Global Bondholder Services Corp. is information agent (212 430-3774).

Chattem is a Chattanooga, Tenn. manufacturer of consumer products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.