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GSI Group prices tender for 12% notes
By Angela McDaniels
Seattle, July 31 - The GSI Group, Inc. will pay $1,170.28 per $1,000 principal amount of notes in the tender offer and consent solicitation for its 12% senior notes due 2013, according to a company news release.
The payout includes a consent payment of $20 per $1,000 principal amount of notes tendered by July 13, the consent deadline.
Noteholders will also receive accrued interest to the payment date, which is expected to be Aug. 1.
The payout equals the sum of the present value on the payment date of $1,060 and the present value on the payment date of any interest that would accrue up to but excluding May 15, 2009, the earliest redemption date, minus accrued interest.
The present value of the notes was determined at 11 a.m. ET on July 31 based on the reference yield of the 5½% U.S. Treasury note due May 15, 2009 plus 50 basis points. The reference yield was 4.648%.
On July 13, the company announced that it had received tenders and consents from holders of all of the notes.
The consents will allow the company to amend the note indenture to eliminate substantially all restrictive covenants, eliminate some events of default, modify covenants relating to mergers and consolidations and modify some other provisions.
The tender offer will expire at midnight ET on Aug. 13.
The tender offer is being conducted in connection with the planned merger of GSI's parent, GSI Holdings Corp., with an affiliate of Centerbridge Capital Partners, LP.
Settlement of the offer remains dependent on the execution of the supplemental indenture, availability of funds and settlement of the merger.
UBS Securities LLC (888 722-9555 ext. 4210 or collect 203 719-4210) is the dealer manager. MacKenzie Partners Inc. (800 322-2885 or collect 212 929-5500) is the information agent.
GSI provides agricultural equipment and services and is based in Assumption, Ill.
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