Alliance Data cancels tender offer for 6%, 6.14% notes, will hold amended prepayment offer instead

By Angela McDaniels

Seattle, Oct. 23 - Alliance Data Systems Corp. said it cancelled the previously announced tender offer, consent solicitation and prepayment offer for its $250 million 6% series A senior notes due 2009 and $250 million 6.14% series B senior notes due 2011.

Instead, the company will hold a new prepayment offer following its merger with Aladdin Merger Sub, Inc. and Aladdin Holdco, Inc.

Under the new prepayment offer, Alliance Data will offer to prepay the notes at par plus a make-whole amount and accrued interest to the payment date.

Under the original prepayment offer, the company offered to buy the notes at par plus accrued interest. The offer was set to end at 9 a.m. ET on Nov. 14.

The company was also holding a tender offer for the notes and soliciting consents to eliminate substantially all of the restrictive covenants, eliminate some events of default and modify or eliminate some other provisions in the note indentures.

The tender offer was slated to expire at 8 a.m. ET on Nov. 14, and the consent deadline was 5 p.m. ET on Oct. 26.

Holders could tender their notes under the tender offer or the prepayment offer but not both. The company noted that the payout under the tender offer was expected to be higher than the payout under the prepayment offer.

Dallas-based Alliance Data provides marketing, loyalty and transaction services.

Aladdin Merger Sub is a Delaware corporation formed by the Blackstone Group to carry out the merger agreement.

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