Unifi begins tender offer, consent solicitation for 11½% notes

By Angela McDaniels

Tacoma, Wash., Dec. 29 - Unifi, Inc. has begun a tender offer and consent solicitation for its 11½% senior secured notes due 2014, according to a company news release.

The company said it is soliciting consents to authorize the elimination of most of the restrictive covenants and some of the events of default contained in the indenture governing the notes and the release of the security for the notes.

Consents are needed from the holders of a majority of the notes in order to amend the indenture, and consents are needed from the holders of at least 75% of the notes in order to release the security.

The consent payment deadline is 5 p.m. ET on Jan. 11, and the tender offer will expire at midnight ET on Jan. 26.

Holders will receive $1,060 per $1,000 principal amount of notes. This includes a consent payment of $30 for each note tendered with consent by the consent payment deadline.

Holders will also receive accrued interest up to but excluding the payment date.

Holders must tender a minimum of $2,000 principal amount of notes in order to participate.

The company plans to use the proceeds from a $140 million debt financing, together with borrowings under its revolving credit facility or available cash, to fund the tender offer. The offer is subject to the completion of the debt financing.

The offer is not conditioned on the receipt of the necessary consents to authorize the amendment of the indenture or the release of the security for the notes.

The company plans, but is not obligated, to redeem any notes that remain outstanding after the completion of the tender offer at 105.75% of par plus accrued interest.

In addition, Unifi said that if it completes the tender offer but purchases less than $140 million principal amount of notes, it plans to satisfy and discharge its obligations with respect to any notes that were not tendered or accepted for purchase in the tender offer.

The dealer manager is J.P. Morgan Securities LLC (800 245-8812 or 212 270-1200). The information agent is D.F. King & Co., Inc. (800 769-7666).

Unifi makes multi-filament polyester and nylon textured yarns and related raw materials and is based in Greensboro, N.C.

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