Reynolds American once more extends exchange for R.J. Reynolds notes

By Jennifer Chiou

New York, Jan. 5 - Reynolds American Inc. said it extended to 5 p.m. ET on Feb. 15 the expiration date for the additional exchange offer for subsidiary R.J. Reynolds Tobacco Holdings, Inc.'s $14.269 million 7 7/8% notes due 2009, $236.449 million 6½% notes due 2007, $82.073 million 7¼% notes due 2012, $0.555 million 7.3% notes due 2015 and $63.551 million 6½% notes due 2010.

The deadline was pushed back from Jan. 4.

As of Jan. 4, the company had received tenders for $44,107,500 or 27% of the notes, up from $35.264 million or 22% of the notes as of Dec. 7, the original expiration date.

The new exchange offer is directed at R.J. Reynolds noteholders who were not eligible to participate in a prior exchange offer that expired in June. It is also open to other noteholders who did not participate in the previous offer.

The prior exchange was conditioned on the closing of Reynolds American's previously announced agreement to acquire a to-be-formed holding company that will own Conwood Co., LP, Conwood Sales Co., LP, Rosswil LLC and Scott Tobacco LLC.

Holders who exchange their securities will receive the same amount of Reynolds American notes with identical interest rates and maturities.

The notes to be issued by Reynolds American will be jointly and unconditionally guaranteed by Reynolds American and its domestic subsidiaries, other than R.J. Reynolds.

The new notes will be secured by Reynolds American principal property and by the assignment of the company's security interest in indirect subsidiary R.J. Reynolds Tobacco Co. stock. The company added that the security for the notes may be released under certain circumstances.

On June 19, Reynolds American said it received tenders from holders of a total of $1.29 billion notes in the exchange offer for up to the $1.45 billion of notes.

The company is a Winston-Salem, N.C.-based manufacturer and marketer of cigarettes and other tobacco products.

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