Exopack buys back $291.51 million of 11¼% notes, calls remainder

By Angela McDaniels

Tacoma, Wash., May 31 - Exopack Holding Corp. repurchased $291,512,000 of its $320 million of 11¼% senior notes due 2014, according to a company news release.

The notes repurchased were tendered by 5 p.m. ET on May 24, which was the consent deadline in a tender offer that began May 6. The offer is scheduled to expire at 11:59 p.m. ET on June 3.

All notes not tendered in the offer will be redeemed at 102.813% of par on June 30. Holders will also receive accrued interest.

The company is also soliciting consents for an amendment to the indenture. Holders who tender will be deemed to have consented to the amendment, and holders may not deliver consents without tendering notes.

The consents received allowed the company to execute a supplemental indenture containing the amendment, which eliminated substantially all of the restrictive covenants, some affirmative covenants, some events of default, some conditions to legal defeasance or covenant defeasance and substantially all of the restrictions on the ability of the company to merge, consolidate or sell all or substantially all of its properties or assets.

The company paid $1,032.13 plus accrued interest for each $1,000 principal amount of notes tendered by the consent deadline. This includes a consent payment of $10.00 per note.

The purchase was funded with the proceeds of a $235 million issue of 10% senior notes due 2018 and borrowings under a new $350 million six-year senior secured term loan facility.

The dealer managers and solicitation agents for the tender offer are Goldman Sachs & Co. (800 828-3182 or 212 357-4692) and Bank of America Merrill Lynch (888 292-0700 or 980 388-9217). The information agent and depositary is Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 873-5600).

Bank of New York Mellon Trust Co., NA is the paying agent for the redemption.

Exopack is a Spartanburg, S.C.-based producer of flexible packaging and coatings solutions.

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