OMI prices tender offer for its $200 million of 7.5/8% notes

Chicago, June 27 - OMI Corp. said it priced its cash tender offer for its $200 million of 7 5/8% senior notes due 2013 tendered.

The company will pay $1,065.40 for each $1,000 principal amount of notes, which includes a consent payment of $30.00 per $1,000 of notes. Notes must be tendered before the consent deadline.

Pricing was calculated using a tender offer yield of 5.404%, set at 2 p.m. ET June 26 using the bid-side yield on 4.625% U.S. Treasury notes due Nov. 30, 2008 plus 50 basis points. The yield on the reference security is 4.904%.

The settlement date is June 27.

All outstanding notes were tendered before the June 26 deadline.

OMI announced on June 13 it was tendering for the notes and also soliciting consents to amend the indenture.

The offer is being conducted following a merger of OMI into Omaha, Inc., after which Omaha changed its name to OMI Corp.

The proposed amendments to the note indenture would eliminate some covenants and events of default and modify some other provisions.

Adoption of the amendments requires consents from holders of at least two-thirds of the outstanding principal amount of the notes.

The consent deadline was set for 5 p.m. ET on June 26. The offer is expected to expire at 11:59 p.m. ET on July 11.

For each $1,000 principal amount of notes tendered by the consent deadline, the company will pay an amount based on the yield to Dec. 1, 2008 of the of the yield to maturity of the 4 5/8% U.S. Treasury due Nov 30, 2008 plus 50 basis points minus accrued interest, calculated at 2 p.m. ET on the 10th business day before the offer expiration date.

The payout includes a consent fee of $30.00 per $1,000 principal amount of notes. Notes tendered after the consent deadline will receive the same amount, less the consent fee.

The company will also pay accrued interest for the notes.

Holders may not tender notes without submitting consents.

Settlement of the offer depends on receipt of consents from holders of at least two-thirds of the notes, among other conditions.

The settlement date for notes tendered before the consent deadline is expected to be June 27 and for notes tendered after the deadline, July 12.

Morgan Stanley (800 62401808) or collect 212 761-5384) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 470-4500 or collect 212 430-3774) is the information agent.

OMI transport crude oil and refined petroleum products and is based in Stamford, Conn.

© 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.