Specialty Foods Group says holders agree to extend exchangeable notes

New York, Dec. 16 - Specialty Foods Group, Inc. said holders of the exchangeable subordinated notes due Dec. 14 issued by itself and Specialty Foods Group Canada Holdings, Inc. agreed to extend the maturity.

Holders also agreed to changes restricting their ability to exchange the debentures and suspending the right to convert them into equity.

During the suspension, Specialty Foods intends to make an exchange offer. Holders will be given the chance to exchange their securities for new notes and warrants or have the debentures repurchased for cash at 115% of the principal amount plus accrued interest. The new notes will not be convertible, will pay interest at 8% and mature on June 30, 2014.

Specialty Foods expects to distribute the exchange documents on Dec. 30.

The existing debentures will mature on the earlier of the third business day following the expiration of the exchange or Feb. 10.

Funding to repurchase the debentures will come from cash on hand and the company's credit facility.

Specialty Foods is a Hampton, Va., producer of premium branded and private-label processed meat products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.