Alere gives holders one more day to consent to convertibles buyback

By Susanna Moon

Chicago, June 7 - Alere Inc. said it extended the consent solicitations for its 9% senior subordinated notes due 2016, 8 5/8% senior subordinated notes due 2018 and 7 7/8% senior notes due 2016.

The solicitations will now end at 5 p.m. ET on June 8, pushed back a day from June 7.

Alere also increased the maximum fees payable in the offer to 2.25% of par, according to a company news release.

As previously noted, the company's board of directors has authorized the repurchase of up to an additional $200 million of the company's series B convertible perpetual preferred stock and/or common stock from time to time. First the company must amend the limitations on restricted payments in the indentures governing the 9%, 8 5/8% and 7 7/8% notes. Authorizations are also needed from its senior secured lenders.

In order to make the amendments, the company must receive consents from the holders of a majority of the notes.

If the amendments are made, the company will make consent payments to holders who have consented by the expiration date. In addition, in some circumstances, the company will pay a lesser fee to certain non-consenting noteholders. The maximum total fees were originally set at 1.75% of par.

Alere said the permission created by the proposed amendments would be in addition to all other existing permissions and exceptions under the restricted payments and other restrictive covenants in the indentures, which will remain in place, will not be reduced by the proposed amendments, will continue to be calculated in the same manner and, where applicable, may increase in accordance with their terms.

So far this year, the company has repurchased 333,788 of its series B convertible preferreds for $92.4 million and 16,700 shares of common stock for $600,000 under its previously approved $100 million repurchase authorization.

Any additional repurchases will be funded with existing cash and/or the proceeds of additional borrowings, including additional borrowings under senior secured loan arrangements.

Jefferies & Co., Inc. is the solicitation agent, and i-Deal LLC (888 593-9546 or 212 849-5000) is the information and tabulation agent.

Alere is a Waltham, Mass.-based medical products and services company.

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