Jean Coutu begins tender offer, consent solicitation for 7 5/8% notes

By Angela McDaniels

Seattle, Feb. 20 - The Jean Coutu Group (PJC), Inc. said it began a tender offer for its $350 million of 7 5/8% unsecured senior notes due 2012 and a consent solicitation to eliminate most of the restrictive covenants in the indenture governing the notes.

The tender offer will expire at 8 a.m. ET on March 21, according to a company news release.

The tender consideration will be based on the yield of the 5% U.S. Treasury note due July 31, 2008 plus 50 basis points.

The total consideration will include a $35.00 consent payment per $1,000 principal amount of notes for noteholders who tender and deliver consents by 5 p.m. on ET March 5, the consent expiration date.

Noteholders who tender must consent to the proposed amendments to the indenture.

The tender offer is conditioned on all conditions to the closing of Rite Aid Corp.'s purchase of The Jean Coutu Group USA Inc. having been satisfied or waived, the receipt of consents from holders of a majority of the notes by the consent expiration date and a majority of the notes being tendered before the Rite Aid acquisition closes.

J.P. Morgan Securities Inc. (866 834-4666) is the dealer manager, and Global Bondholder Services Corp. (866 540-1500) is the information agent.

Jean Coutu Group is a drugstore chain based in Longueuil, Quebec.

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