Jean Coutu extends tender offers for 7 5/8%, 8½% notes

By Angela McDaniels

Seattle, April 25 - The Jean Coutu Group (PJC) Inc. extended the tender offers for its 7 5/8% unsecured senior notes due 2012 and 8½% senior subordinated notes due 2014 to 8 a.m. ET on May 25 from April 26.

As of April 25, 99.45% of the outstanding 8½% notes and more than 99.99% of the outstanding 7 5/8% notes have been tendered, according to a company news release.

Concurrent consent solicitations for the notes expired on April 6. The company has received consents from holders of a majority of the notes, which will allow it to amend the indentures 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 tendered and delivered 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.

J.P. Morgan Securities Inc. (866 834-4666) is the dealer manager for the tender offer for the 7 5/8% notes, and Global Bondholder Services Corp. (866 540-1500) is the information agent for both offers.

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.