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CSK Auto gets waiver for 4 5/8% exchangeables
By Jennifer Chiou
New York, July 27 - CSK Auto Corp. said that its wholly owned subsidiary, CSK Auto, Inc., reached an agreement with holders of a majority of its $100 million of 4 5/8% senior exchangeable notes due 2025 to waive any default or event of default resulting from failing to meet financial filing deadlines.
Noteholders also agreed to amend the indenture to allow the company until June 30, 2007 to meet financial filing covenants.
In exchange, the company said it will amend the note indenture to increase the interest rate to 6¾% per year and the exchange rate to 60.6061 shares from 49.8473 shares per $1,000 principal amount of notes.
The company added that it expects to execute a supplemental indenture on or before July 28.
On July 24, the company pulled its tender offer for its 4 5/8% notes because it did not receive tenders from a majority of noteholders.
At 5 p.m. ET on July 21, holders of $33.975 million or 34% of the 4 5/8% notes had tendered their holdings - unchanged from July 18.
CSK previously extended the tender deadline to 5 p.m. ET on July 21 from 5 p.m. ET on July 18.
As previously announced, the company said that holders of its $125 million of 3 3/8% senior exchangeable notes due 2025 accelerated payment on the securities due to CSK Auto's failure to file its 10-K for the year ended Jan. 29 before July 2. The company paid for the notes with borrowings under its credit facility.
In the tender for the 4 5/8% notes, the Phoenix-based specialty automotive aftermarket retailer was also soliciting consents to amend the indenture for the notes, eliminating all material restrictive covenants and certain events of default and related provisions.
CSK Auto had said it would pay par plus accrued interest to the purchase date.
The offers were conditioned upon tenders from holders of a majority of the notes as well as financing from a new credit facility.
The Altman Group, Inc. is the information agent and depositary (201 806-7300).
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