Levi Strauss tenders for 12¼% notes

By Jennifer Chiou

New York, Sept. 19 - Levi Strauss & Co. said it began a cash tender offer for any and all of its $525 million of 12¼% senior notes due 2012.

The San Francisco clothing company also is soliciting consents to amend the note indenture to eliminate or make less restrictive most of the restrictive covenants and certain related events of default.

The consent deadline is 5 p.m. ET on Oct. 3. The tender ends at midnight ET on Oct. 17.

Levi Strauss is offering the present value, minus accrued interest, of $1,061.25 per $1,000 principal amount of the notes - the redemption amount of the notes on Dec. 15, 2007, the first call date, discounted using the 4.375% Treasury due Dec. 31, 2007 and 50 basis points, plus accrued interest up to but excluding the payment date.

The total will include a consent payment of $30.00 per $1,000 principal amount that will only be paid to holders who tender and deliver consents by the early deadline.

Levi Strauss said it expects to buy notes tendered by the consent deadline promptly after Oct. 3.

The tender is conditioned upon the company having amended its senior secured revolving credit facility to increase its line of credit by an additional $200 million to $750 million, which shall include a $250 million tranche that is secured by the Levi's trademark in the United States, as well as the receipt of consents from holders of a majority of notes.

Credit Suisse is the dealer manager and solicitation agent (call collect 212 325-4951). D.F. King & Co., Inc. is the information agent (888 887-0082 or call collect 212 269-5550).

© 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.