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Jean Coutu prolongs tender offer for 7 5/8% notes
By Jennifer Chiou
New York, March 20 - The Jean Coutu Group (PJC), Inc. announced the extension of its tender offer for its $350 million of 7 5/8% unsecured senior notes due 2012 to 8 a.m. ET on April 5 from March 21.
By the consent deadline of 5 p.m. ET on March 5, holders had tendered more than 99.9% of the notes, enough to amend the indenture.
Jean Coutu previously said it intends to execute a supplemental indenture that will become operative when it buys the notes.
As already reported, the company is postponing the fixing of the purchase price in the tender. The new date is to be announced and will be at least 10 business days before the expiration of the offer.
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 consent payment per $1,000 principal amount of notes for noteholders who tendered and delivered consents by the consent expiration date.
Noteholders who tender must consent to the amendments.
Jean Coutu announced the tender on Feb. 20 with a consent solicitation to eliminate most of the restrictive covenants in the indenture governing the notes.
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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