Accellent investors tender $230.77 million 10½% notes in offer so far

By Devika Patel

Knoxville, Tenn., Oct. 28 - Accellent Inc. said holders tendered $230,767,000 in 10½% senior subordinated notes due 2013 as part of the company's cash tender offer for any and all of the $295 million in notes. The notes were tendered by 5 p.m. ET on Oct. 27, the early tender and consent deadline.

The tender offer launched on Oct. 14 and will expire at 11:59 p.m. ET on Nov. 10.

The company also said it will redeem for cash any notes that remain outstanding following the tender. The company will pay 102.625 plus interest up to but excluding the redemption date of Dec. 1. The Bank of New York Mellon (800 254-2826) is the trustee and paying agent.

In the tender offer, the company is concurrently soliciting consents to a proposed amendment to the indenture for the notes. The amendment would eliminate substantially all of the restrictive covenants, some affirmative covenants, some events of default and some defeasance conditions. It would also eliminate almost all of the restrictions on the company's ability to merge, consolidate or sell its properties or assets contained in the indenture and the notes. As of the consent deadline, the company had received consents from a majority of noteholders and consequently executed a supplemental indenture outlining these changes.

The total consideration for notes tendered by the consent deadline and accepted for purchase will be $1,030 per $1,000 principal amount of notes, plus accrued interest. The total consideration includes a consent payment of $10 per $1,000 of notes.

Holders of notes tendered after the consent deadline will not be eligible to receive the consent payment.

Goldman, Sachs & Co. (800 828-3182 or 212 902-5183) is the dealer manager for the tender offer and the solicitation agent for the consent solicitation. Global Bondholder Services Corp. (212 430-3774 for banks and brokers and 866 873-5600 for noteholders) is the information agent and depositary.

Based in Wilmington, Mass., Accellent provides manufacturing and engineering services to the medical device industry in the cardiology, endoscopy and orthopedic markets.

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