Jean Coutu further extends consent solicitation for 7 5/8% notes

By Angela McDaniels

Seattle, April 4 - The Jean Coutu Group (PJC) Inc. said it further extended its consent solicitation for its 7 5/8% unsecured senior notes due 2012 to 8 a.m. ET on April 26 from April 5.

The company previously extended the consent expiration date from April 4. A concurrent tender offer expires at 8 a.m. ET on April 26.

As of April 4, more than 99.9% of the outstanding notes have been tendered, according to a company news release. The consents will allow the company to amend the indenture to eliminate most of the restrictive covenants.

The tender consideration for each $1,000 principal amount of the notes will be calculated using the yield of the 3 5/8% U.S. Treasury note due July 15, 2009 plus 150 basis points.

The tender consideration will include a $35.00 consent payment for noteholders who tender and deliver consents by the consent expiration date. Noteholders who tender must consent to the proposed amendments to the indenture.

The company said it may accept the notes prior to the expiration date if Rite Aid Corp.'s pending purchase of the Jean Coutu Group USA Inc. closes during the tender offer. If so, noteholders will receive payment on the second day following the company's acceptance of the notes.

The tender offer is conditioned upon the closing of the Rite Aid acquisition and the receipt of tenders and consents from holders of a majority of the notes.

Global Bondholder Services Corp. (866 540-1500) is the information agent for the tender offer and consent solicitation.

Jean Coutu Group is a drugstore chain based in Longueuil, Quebec. Jean Coutu Group USA includes 1,858 drugstores, of which 337 are Brooks stores and 1,521 are Eckerd stores, and six distribution centers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.