DRS solicits consents for three series of notes

By Jennifer Chiou

New York, Dec. 5 - DRS Technologies, Inc. began a consent solicitation for its 6 7/8% senior subordinated notes due 2013, 6 5/8% senior notes due 2016 and 7 5/8% senior subordinated notes due 2018.

On Nov. 25, the company announced a change-of-control tender offer for all of the notes in an 8-K filing with the Securities and Exchange Commission. The offer is related to a change of control, which occurred on Oct. 22, as a result of the company's merger with Dragon Merger Sub, Inc., a wholly owned subsidiary of Finmeccanica - Societa per azioni.

On Nov. 13, Finmeccanica said it would guarantee DRS' payment obligations under the notes. In connection with the guarantees, DRS is looking to amend the note indentures to modify the reporting covenant, allowing it to forgo filing reports with the SEC and instead providing holders with consolidated annual and interim financial reports.

The solicitation ends at 5 p.m. ET on Dec. 19. The tender offer for 6 7/8% and 7 5/8% notes will expire at 5 p.m. ET on Jan. 15. The offer for 6 5/8% notes will end at 5 p.m. ET on Jan. 14.

The company said it will pay $1,010 plus accrued interest to Jan. 20 per $1,000 principal amount for the 6 7/8% and 7 5/8% notes and to Jan. 19 for the 6 5/8% notes in the tender offer, and it will pay a $1.00 consent fee in the consent solicitation.

Global Bondholder Services Corp. is the information and tabulation agent (call collect 212 430-3774 or 866 540-1500). Merrill Lynch & Co. is the solicitation agent (call collect 212 449-4914 or 888 654-8637).

DRS Technologies is a Parsippany, N.J., supplier of products and services to the military, government agencies and prime contractors.

Finmeccanica is based in Italy and is a manufacturer of helicopters, civil and military aircraft, aero structures, satellites, space infrastructure, missiles, defense electronics and security.

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