Buckeye solicits consents for 8½% notes to permit 8% note redemptions

By Jennifer Chiou

New York, June 17 - Buckeye Technologies Inc. announced the start of a consent solicitation for its $200 million of 8½% senior notes due Oct. 1, 2013.

The company is looking to amend the indenture to permit the redemption, repurchase or retirement of subordinated debt, including its 8% senior subordinated notes due 2010, up to 16 months prior to maturity.

Currently, the company may make redemptions up to one year prior to maturity.

Buckeye said it will pay a consent fee of $650,000 in total to all consenting holders.

The company said it will compute the consent fee payable for each $1,000 principal amount of 8½% notes by multiplying 1,000 by the quotient of (a) $650,000 and (b) the total principal amount of notes for which consents are validly delivered.

Assuming the company obtains consents for all notes, the consent fee will equal $3.25 per $1,000 principal amount of notes. If it receives consents for $100,001,000 of the 8½% notes, the consent fee will equal $6.50.

The solicitation ends at 5 p.m. ET on June 30.

The company is seeking consents from holders of a majority of notes.

Global Bondholders Services Corp. is the information agent (866 470-4300 or call collect 212 430-3774).

Buckeye is a Memphis-based manufacturer of specialty fibers and nonwoven materials.

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