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Stewart Enterprises gets needed tenders for 6¼% notes by consent date
By Susanna Moon
Chicago, April 15 - Stewart Enterprises, Inc. said holders tendered $194,188,000, or more than 97%, of its $200 million of 6¼% senior notes due 2013 by the consent deadline at 5 p.m. ET on April 15.
The company said it plans to execute a supplemental indenture to the notes to eliminate substantially all of the restrictive covenants and some events of default.
Consents were needed from the holders of a majority of the outstanding notes to amend the notes.
The supplemental indenture will become operative when the notes tendered by the consent date have been purchased, which is expected to occur on April 18.
Holders who tender their notes are deemed to have consented to the proposed amendments, and holders who consent are required to tender their notes.
The company will pay $1,002.50 for each $1,000 principal amount, including a consent payment of $10.00 for each note tendered by the consent date.
The tender offer will continue until 8 a.m. ET on May 2. The offer began April 4.
Holders will also receive accrued interest up to but excluding the settlement date.
The offer is conditioned upon the issue of $200 million principal amount of 6½% senior notes due 2019 with enough proceeds to help fund payment of the offer. Stewart priced the notes at par on April 4.
Merrill Lynch (888 292-0070 or 980 388-9217) is the dealer manager and solicitation agent, and D.F. King & Co. (800 769-7666 or, for banks and brokerage firms, 212 267-5500) is the information agent.
Stewart Enterprises operates funeral homes and cemeteries and is based in Jefferson, La.
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