Metaldyne begins tender offer for 10%, 11% notes at steep discount

By Angela McDaniels

Tacoma, Wash., Oct. 30 - Metaldyne Corp. has begun a cash tender offer for all of its outstanding notes, which have a combined principal amount of $392.2 million.

The company has $142.2 million of outstanding 10% senior notes due 2013 and $250 million of outstanding 11% senior subordinated notes due 2012.

For each $1,000 principal amount of notes tendered by the early participation deadline, the payout will be $270.18 for the 10% notes and $106.30 for the 11% notes. For notes tendered after the early deadline and before the final deadline, the payout will be $265.18 for the 10% notes and $101.30 for the 10% notes.

The early participation deadline is Nov. 12, and the tender offer will expire on Nov. 26.

The total amount paid will be $65 million if all notes are tendered by the early participation deadline, according to a company news release.

The company is also soliciting consents to amend the indentures governing the notes. The amendments would eliminate substantially all of the restrictive covenants and some events of default and release all collateral securing the notes.

Consents are needed from holders of at least two-thirds of each series of notes in order to adopt the proposed amendments.

Completion of the tender offer is subject to the receipt of tenders for at least 95% of the notes, the receipt of funding and other customary conditions.

Cash for the tender offer, along with cash for general funding purposes, will be provided by parent company Asahi Tec Corp. after it receives funds from RHJ International, Asahi Tec's largest shareholder, and some of Metaldyne's customers.

BMC Group, Inc. (310 321-5541 or 888 900-0100) is the information and voting agent.

Metaldyne is a Plymouth, Mich.-based maker of metal-based components, assemblies and modules for transportation-related powertrain and chassis applications.

Asahi Tec is based in Shizuoka, Japan, and makes chassis and powertrain components in the passenger car/light truck and medium/heavy truck segments.

© 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.