Loehmann's ups payment for noteholders who tender after early deadline

By Angela McDaniels

Tacoma, Wash., Oct. 25 - Loehmann's Capital Corp. amended its private exchange offer for three series of notes so that all holders will receive $1,000 principal amount of new notes for every $1,000 principal amount of old notes exchanged, according to a company news release.

Previously, only holders who tendered by the early tender deadline, 11:59 p.m. ET on Oct. 22, would have received that amount, and holders who tendered after the early tender deadline would have received $970 of new notes per $1,000 of old notes.

The company began the exchange offer a consent solicitation on Sept. 24 for its 12% senior secured class A notes due 2011, floating-rate senior secured class A notes due 2011 and 13% senior secured class B notes due 2011.

As previously reported, the company is offering 12% senior secured class A notes due 2014, floating-rate senior secured class A notes due 2014 and 13% senior secured class B notes due 2014 in exchange for the three series of outstanding notes.

Holders who tender will receive new notes in the same class as their existing notes.

The offer will expire at 11:59 p.m. ET on Oct. 27.

Holders tendering old notes for exchange will be deemed to have granted their consents, and consents may not be delivered without tendering.

On Oct. 14, the company announced that it had received enough consents to increase the priority lien cap under its lease agreement and intercreditor agreement to $45 million from $35 million, which will allow for a corresponding increase in the amount available under Loehmann's Operating Co.'s revolving credit facility. In addition, Loehmann's Operating will be able to close up to 15 underperforming stores in the next 12 months and liquidate the inventory in those stores.

The exchange is being carried out as a private offer to qualified institutional buyers.

The completion of the exchange offer is subject to conditions including the receipt of tenders for at least 97% of the existing notes. As of the early tender deadline, more than 50% of the notes had been tendered.

The information agent is Global Bondholder Services Corp. (212 430-3774).

Loehmann's is a Melville, N.Y.-based retailer of women's clothing.

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