Altra Industrial launches consent solicitation for 9%, 11¼% notes

By Laura Lutz

Washington, March 8 - Altra Industrial Motion, Inc. announced a solicitation of consents from holders of its 9% senior secured notes due 2011 and 11¼% senior notes due 2013.

The consent solicitations will expire at 5 p.m. ET on March 21 or when the company receives the consents necessary to amend the notes, whichever is earlier.

Consents from holders of a majority of each series of notes are required to amend the notes.

The proposed amendments are intended to give the company the necessary flexibility to finance its recently announced acquisition of TB Wood's Corp., in part through the issuance of additional 2011 notes.

If the company does not receive the consents it needs to amend the notes, Altra Holdings, the parent company, would cause a sister holding company to Altra Industrial to complete the acquisition using financing other than the issuance of additional notes.

Consenting noteholders will receive $2.50 in cash for each $1,000 principal amount of 2011 notes and £2.50 in cash for each £1,000 principal amount of 2013 notes.

Jefferies & Co. Inc. (203 708-5831) will act as solicitation agent, and The Bank of New York Trust Co., NA (212 815-6331) will act as depositary.

Based in Quincy, Mass., Altra produces electromechanical power transmission products.

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