IKON Office Solutions finally gets consent to amend 7¾% note indenture

By Angela McDaniels

Seattle, March 30 - IKON Office Solutions said it received consents to amend the indenture governing its $225 million of 7¾% senior notes due 2015 from holders of a majority of the notes during a consent solicitation that expired on Thursday.

Accordingly, IKON and note trustee the Bank of New York have entered into a supplemental indenture implementing the proposed amendments, which will increase the company's capacity to repurchase its capital stock and pay dividends on its common stock and will allow IKON to incur up to $10 million of additional debt in the form of capital lease and other similar obligations.

The capital stock repurchase capacity will be increased once IKON files its 10-Q report for the quarter ending March 31 and will be subject to compliance with a leverage test, according to a company news release.

The company expects to make the consent payment to consenting noteholders on Friday. The consent payment amount was not disclosed.

The consent solicitation began on March 16.

Wachovia Securities, Liability Management Group (704 715-8341) was the solicitation agent, and D.F. King & Co. (212 269-5550 or 800 290-6426) was the information agent.

In a consent solicitation that ended on Jan. 5, IKON failed to receive the consents necessary to amend the notes despite extending the deadline three times and offering a consent payment of $20.00 per $1,000 principal amount of notes.

IKON is based in Malvern, Pa., and provides products and services that help businesses manage document workflow.

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