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Friendly Ice Cream gets tenders for $167.2 million 8 3/8% notes
By Jennifer Chiou
New York, Aug. 30 - Friendly Ice Cream Corp. said it obtained tenders from holders of $167,196,000 of its $175 million of 8 3/8% senior notes due 2012.
The offer expired at 5 p.m. ET on Aug. 29, extended from midnight ET on Aug. 22.
As of Aug. 22, investors had tendered $162.2 million of the notes.
On Aug. 9, the company announced the receipt of consents from holders of 89.7% of the notes.
The company obtained the necessary consents to, among other things, substantially eliminate all of the restrictive covenants and certain events of default and has executed a supplemental indenture. The consent deadline was 5 p.m. ET on Aug. 8.
For each $1,000 in principal amount, the company paid an amount using a fixed spread of 50 basis points over the yield on the 4.875% Treasury due May 31, 2008.
The payout also included a $30.00 consent payment for those who tendered by the early deadline.
Friendly Ice Cream also paid interest to the settlement date.
As previously announced on June 17, Friendly Ice Cream entered into a merger agreement among parent Freeze Operations Holding Corp. and Freeze Operations, Inc., a wholly owned subsidiary of its parent, under which the subsidiary will merge into Friendly Ice Cream. The acquisition was completed on Aug. 30.
The offer was conditioned on, among other things, the closing of the merger as well as the execution of a supplemental indenture.
Barclays Capital Inc. was the dealer manager and solicitation agent (call collect 212 412-4072 or 866 307-8991). Georgeson Inc. was the information agent (888 605-7583).
Friendly Ice Cream is a restaurant company based in Wilbraham, Mass.
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