Land O'Lakes noteholders tender $2.71 million 8¾% notes

By Angela McDaniels

Seattle, May 4 - Land O'Lakes, Inc. bought back $2.71 million of its $350 million 8¾% senior notes due 2011 during a tender offer that expired on Friday, according to an 8-K report filed with the Securities and Exchange Commission.

The company had also offered to repurchase its $150 million 9% senior secured second-lien notes due 2010, but no 9% notes were tendered.

On Feb. 21, Land O'Lakes said it would offer to purchase the 8¾% and 9% notes at par using proceeds from the sale of the assets of its Cheese & Protein International operations to Saputo Cheese USA Inc. for about $216 million.

The indentures governing the notes require the company to apply the proceeds of an asset disposal first to repay bank debt; second to invest in additional assets; third to make a par offer for the notes; and fourth for any general corporate purposes.

The Arden Hills, Minn.-based food and agricultural cooperative did not prepay any bank debt or invest in additional assets, so it made a tender offer for the notes following the close of the Cheese & Protein sale, which occurred in early April.

© 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.