FKI holders tender €404.35 million of 6 5/8% bonds, reject resolution

By Susanna Moon

Chicago, Sept. 22 - FKI plc said holders tendered €404.35 million principal amount of the 6 5/8% guaranteed bonds due 2010.

The company also said that on Sept. 22, bondholders failed to approve the extraordinary resolution.

FKI previously said it was asking bondholders to approve modification of the conditions that provide for FKI to have the option to redeem all, but not some, of the bonds. Those who approved the change by the early deadline would receive the early tender premium.

FKI announced the tender offer for €600 million of the bonds on Aug. 29.

The early tender deadline was 11 a.m. ET on Sept. 12, and the offer ended at 11 a.m. ET on Sept. 17.

Pricing will be set at 6 a.m. ET on Sept. 23. The repurchase yield is the sum of the interpolated mid-swap rate and the repurchase spread, and the repurchase spread is 120 basis points.

The effective early tender yield is the sum of the interpolated mid-swap rate and the effective early tender spread, and the effective early tender spread is 100 bps.

Sept. 26 is the slated settlement date.

The dealer managers are Barclays Bank plc (44 20 7773 8575), HSBC Bank plc (44 20 7991 5874) and the Royal Bank of Scotland plc (44 20 7085 8056 or 44 20 7085 3781). The tender agent is the Bank of New York Mellon (44 20 7964 4958).

London-based FKI is a diversified engineering group.

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