Rhodia sets pricing, gets tenders for 98.3% of 10¼% notes at early deadline

By Jennifer Chiou

New York, Feb. 20 - Rhodia SA received tenders from holders of $413.812 million, or 98.3%, of its $420.875 million 10¼% senior notes due 2010 as of the consent deadline at 5 p.m. ET on Feb. 14, according to a 6-K filing with the Securities and Exchange Commission.

The company is seeking consents to amend the note indenture to eliminate substantially all of the restrictive and reporting covenants.

For each $1,000 principal amount of notes, the company will pay $1,150.99, which is an amount based on the yield of the 3 5/8% U.S. Treasury due June 15, 2010 plus 50 basis points. Pricing was determined at 10 a.m. ET on Feb. 15. The reference yield was 4.695%, and the tender yield was 5.195%.

The payout includes a $30.00 consent fee for each $1,000 principal amount of notes tendered before the consent deadline. Notes tendered after the early deadline will receive the same amount, less the consent fee.

Rhodia said it settled the bonds tendered prior to the consent deadline on Feb. 16.

The tender offer will expire at midnight ET on March 1. It began on Feb. 1.

Credit Suisse (800 820-1653 or call collect 212 538-0652) is the dealer manager. D.F. King & Co. Inc. (800 859-8511 or call collect 212 269-5550) is the New York tender agent and the information agent, and The Bank of New York (Luxembourg) SA (44 0 20 7964 6705) is the Luxembourg tender agent.

Rhodia is a Courbevoie, France-based specialty chemicals company.

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