Alere pays $27.1 million of consent fees, gives exact consent numbers

By Angela McDaniels

Tacoma, Wash., June 22 - Alere Inc. disclosed the exact amount of consents received from the holders of its 9% senior subordinated notes due 2016, 8 5/8% senior subordinated notes due 2018 and 7 7/8% senior notes due 2016 in an 8-K filing with the Securities and Exchange Commission.

The consent solicitation ended at 5 p.m. ET on June 16. The company announced on June 17 that it had received consents from enough holders to make the desired amendments to the note indentures.

The board of directors 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.

Before the company could make any repurchases, it needed to amend the limitations on restricted payments in the indentures governing the 9%, 8 5/8% and 7 7/8% notes and to make changes to the setting of record dates for certain purposes.

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

With respect to the restricted payments amendments, consents were received from the holders of $390,395,000, or 97.6%, of the 9% notes; $387.77 million, or 96.9%, of the 8 5/8% notes; and $249.32 million, or 99.7%, of the 7 7/8% notes.

With respect to the record date amendments, consents were received from the holders of $374,182,000, or 93.5%, of the 9% notes; $382,297,000, or 95.5%, of the 8 5/8% notes; and $243,912,000, or 97.5%, of the 7 7/8% notes.

The company paid $27.1 million of consent fees, including minimum payments made to maintain the fungibility of all of the notes.

Previously, the company said it would pay a consent fee to holders who consented by the expiration date and, in some circumstances, a lesser fee to certain non-consenting noteholders.

The maximum fees payable in the offer were 2.625% of par. This was increased from 2.25% of par and, earlier, 1.75% of par.

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

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.