Gundle/SLT Environmental receives enough consents to amend 11% notes

New York, May 25 - Gundle/SLT Environmental, Inc. said holders delivered sufficient consents to allow it to amend its $150 million of 11% senior notes due 2012.

By the consent deadline of 5 p.m. ET on May 25, the company had received consents for $132,358,000, or 88.24%, of the notes.

Gundle/SLT said it has executed a supplemental indenture but that the changes will not go into effect until immediately before it closes on a new senior secured credit facility. A financing condition also has to be met and the notes that have been tendered purchased.

The company announced on May 13 that it had begun a tender offer and consent solicitation for its 11% notes.

The company was soliciting consents to proposed amendments to the indenture governing the notes that would eliminate substantially all of the restrictive covenants and some events of default and modify certain other provisions. Consents were needed from the holders of at least a majority of the notes in order to make the amendments.

Holders who tender will be deemed to have consented to the proposed amendments, and holders who consent will be required to tender their notes.

The tender offer will expire at 5 p.m. ET on June 10.

The company will pay $1,003.75 per $1,000 principal amount of notes. This payment includes a consent payment of $3.75 for each note tendered by the consent deadline.

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

The tender offer is subject to the receipt of the needed consents and the effectiveness of the company's proposed new senior secured credit facilities yielding enough proceeds to refinance its existing revolving credit facility and fund all of its obligations under the tender offer and consent solicitation.

The dealer manager and solicitation agent is Jefferies & Co., Inc. (888 708-5831 or 203 708-5831). The information agent and tender agent is D.F. King & Co., Inc. (800 290-6429 or 212 269-5550).

Gundle/SLT makes geosynthetic lining products used in waste management, mining, water and wastewater treatment, aquaculture and other industrial activities. It is based in Houston.

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