American Achievement extends consent solicitations for 8¼% notes, 10¼% discount notes

By Angela McDaniels

Tacoma, Wash., June 27 - American Achievement Corp. said the consent solicitation for its 8¼% senior subordinated notes due 2012 and the consent solicitation for AAC Group Holding Corp.'s 10¼% senior discount notes due 2012 were extended to 5 p.m. ET on July 15.

Both consent solicitations began on June 9 and were slated to expire on July 8.

The companies also extended the consent date to 5 p.m. ET on July 3. Noteholders who consent by this time will receive a consent fee of $5 per note, according to a company news release.

The previous consent date was 5 p.m. ET on June 20.

The consent solicitations are being held in connection with a May 15 agreement under which Herff Jones Inc. will acquire all the equity securities of American Achievement Group Holding Corp., which is the parent company of AAC Group. AAC Group is American Achievement's immediate parent company.

The proposed indenture amendments would remove substantially all of the restrictive and reporting covenants and remove some events of default and related provisions, including the covenant that would otherwise require the companies to hold tender offers for the notes after the acquisition is completed.

The amendments would also require the companies to redeem all the outstanding notes for which consents have been delivered. The redemption would occur after the acquisition.

The companies changed the amendment on Friday so that noteholders would receive 102.3125 for the 8¼% notes and 102.8125 for the 10¼% notes, plus accrued interest in each case.

Under the amendment as originally proposed, noteholders would have received 101 plus accrued interest.

Each consent solicitation is conditioned on the receipt of consents from holders of at least a majority of the notes. They are not, however, conditioned on each other.

If approved, the amendments would be made only if the acquisition closes by July 8.

American Achievement is an Austin, Texas-based provider of products used to mark special occasions, such as yearbooks and class rings.

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