Gregg gets tenders for 96.98% of 9% notes

By Angela McDaniels

Seattle, July 25 - Gregg Appliances, Inc. said it received tenders for $107.847 million, or 96.98%, of its $111.205 million 9% senior notes due 2013 during a tender offer that expired at midnight ET on Tuesday.

The offer was made in connection with hhgregg, Inc.'s initial public offering of common stock, which closed on Wednesday. hhgregg became Gregg's parent company in a corporate reorganization.

Noteholders had tendered and submitted consents for $104.272 million, or 93.8%, of the notes as of 5 p.m. ET on July 10, the consent deadline.

The company paid $1,092.19 for each $1,000 principal amount of notes tendered plus accrued interest up to but excluding Wednesday, the payment date.

The payout included a $30.00 consent payment for notes tendered by the consent deadline.

The total consideration was determined at 2 p.m. ET on July 10 based on a fixed spread of 50 basis points over the bid-side yield to maturity of the 4 7/8% U.S. Treasury note due Jan. 31, 2009.

The tender offer was conditioned on the receipt of tenders from holders of at least a majority of the notes, the consummation of hhregg's IPO resulting in proceeds of at least $48.75 million and the closing of a debt refinancing under which Gregg increased its existing $75 million revolving credit facility to $100 million and entered into a new $100 million term loan B.

The tender offer was funded with proceeds from the IPO and from the debt refinancing. IPO proceeds will also be used to redeem Gregg's junior notes.

Wachovia Securities (866 309-6316 or collect 704 715-8341) was the dealer manager and solicitation agent for the tender offer and consent solicitation. Global Bondholder Services Corp. (866 470-4500 or collect 212 430-3774) was the information agent and tender agent.

Indianapolis-based Gregg sells consumer electronics, home appliances, mattresses and related services, operating under the hhgregg and Fine Lines brands.

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