Texas Industries tenders, seeks consents for $550 million of 7¼% notes

By Susanna Moon

Chicago, July 27 - Texas Industries, Inc. said it began a cash tender offer and consent solicitation for any and all of its $550 million principal amount of 7¼% senior notes due 2013.

Texas Industries will pay $1,020.63 for each $1,000 principal amount, including a $20.00 premium, for notes tendered by 5 p.m. ET on Aug. 9, the consent payment deadline.

Holders also will receive accrued interest to the payment date, which is expected to be Aug. 10 for notes tendered by the consent date and Aug. 24 for notes tendered thereafter.

The company also is soliciting consents to eliminate substantially all of the restrictive covenants and events of default in the note indenture.

Holders may not tender their notes without delivering consents or vice versa.

Tendered notes may not be withdrawn and consents may not be revoked after 5 p.m. ET on Aug. 9 or after the execution of a supplemental indenture, whichever occurs first.

The company said it expects to fund the tender with the issuance of new senior notes due 2020.

The offer will end at 11:59 p.m. ET on Aug. 23.

The offer requires consents from holders of a majority of the notes, the execution of the supplemental indenture and the completion of new debt financings with proceeds sufficient to fund the tender.

Bank of America Merrill Lynch (888 292-0070 or collect 980 388-9217) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 578-5378 or bankers and brokers 212 269-5550) is the information agent.

Texas Industries is a Dallas-based producer and seller of heavy construction materials.

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