Ainsworth Lumber prolongs early deadline in exchange offer for up to $596 million of notes

By Jennifer Chiou

New York, March 3 - Ainsworth Lumber Co. Ltd. announced the extension of the early participation deadline in its exchange offer for up to $596 million of its outstanding notes in five series.

Holders who tender by 5 p.m. ET on March 7, extended from Feb. 29, will also receive a consent fee of $50 per $1,000 principal amount of notes.

The exchange offer is still scheduled to expire at midnight ET on March 14.

Under the offer, holders of the existing notes may exchange them for 14% senior secured second-lien notes due June 24, 2014, which will be issued in a total principal amount of up to $596 million.

The offer applies to $153.5 million of senior unsecured floating-rate notes due 2010, $275 million of 7¼% senior unsecured notes due 2012, $75 million of senior unsecured floating-rate notes due 2013, $210 million of 6¾% senior unsecured notes due 2014 and $110 million of 6¾% senior unsecured notes due 2014.

Ainsworth Lumber is soliciting consents to amend the indentures governing the existing notes. Those amendments would remove substantially all of the restrictive covenants and some events of default.

Settlement of the offer depends on receipt of tenders from holders of at least 50.1% of the existing notes and consents from holders of at least a majority of each class of existing notes.

The company noted that if the minimum consent and minimum tender conditions are satisfied by the extended early participation date, the expiration date of the exchange offer will be extended to midnight ET on March 21.

Ainsworth Lumber said that holders of about one-third of its existing notes have already agreed to tender their notes and deliver consents.

Barclays Capital Inc. is the financial adviser, and Global Bondholder Services Corp. (call collect 212 430-3774 or 866 470-4300) is the exchange agent and information agent.

Ainsworth Lumber is a Vancouver, B.C.-based forest products company.

© 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.