Keystone Automotive obtains tenders for exchange for 98.6% of 9¾% notes, further prolongs offer

By Jennifer Chiou

New York, March 17 - Keystone Automotive Operations Inc. announced the receipt of tenders for 98.6% of its 9¾% senior subordinated notes due 2013 so far in the exchange offer and consent solicitation for the securities.

The company also extended the solicitation and offer to 5 p.m. ET on March 28 from March 16 while also pushing back the expiration of the $60 million rights offering in connection with the exchange to 5 p.m. ET on March 18, also extended from March 16.

"We are very pleased with the current progress of the exchange offer and look forward to finalizing our recapitalization plan out of court," president and chief executive officer Ed Orzetti said in a news release.

In exchange for their notes, holders are being offered their pro rata share of about 22% of the new common stock of reorganized Keystone and the ability to purchase, through the rights offering, their pro rata share of about 47.4% of the new common stock.

The exchange offer is conditioned on 98% of the notes being tendered.

The company is also soliciting acceptances of a pre-packaged plan of reorganization. Keystone said that if the minimum tender condition had not been met, it would have looked to implement the restructuring by starting Chapter 11 cases and seeking confirmation of the pre-packaged plan.

The subscription agent for the rights offering is Garden City Group, Inc. (888 476-7159).

Keystone is an Exeter, Pa.-based distributor and marketer of specialty automotive accessories.

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