Harbinger gets needed consents to amend $500 million 10 5/8% notes

By Marisa Wong

Madison, Wis., Dec. 24 - Harbinger Group Inc. said it received the necessary consents to amend the indenture governing its $500 million principal amount of 10 5/8% senior secured notes due Nov. 15, 2015.

Harbinger sought to remove substantially all of the restrictive covenants and certain other provisions in the indenture. The company needed consents from holders of a majority of the outstanding notes for some proposed amendments and at least 75% of the outstanding notes for additional proposed amendments, as previously reported.

The company began the consent solicitation and the related tender offer for the notes on Dec. 10.

As of 5 p.m. ET on Dec. 21, the early tender deadline, holders had tendered 99.6% of the outstanding principal amount of notes.

As a result, the company entered into a supplemental indenture effecting the amendments. The company said it also received the required consents to authorize release of the liens and the security interest in the collateral securing the notes.

On Monday, Harbinger accepted for purchase all notes tendered by the early deadline.

The company said it intends to accept for purchase all notes tendered after the early deadline and prior to the expiration time, which is midnight ET on Jan. 8.

As previously announced, the total purchase price is $1,091.81 for each $1,000 principal amount of notes tendered by the early tender date. The total payment includes a $20.00 consent payment.

Those who tender after the early deadline will receive the tender payment of $1,071.81 per $1,000 principal amount.

The company also will pay accrued interest to but excluding the applicable settlement date, which is Dec. 24 for early tendered notes and Jan. 9 for any remaining notes.

Holders could not deliver consents without tendering their notes or tender notes without delivering corresponding consents, according to a company press release.

Tendered notes may no longer be withdrawn.

The tender offer and consent solicitation are conditioned on completion of debt financing, as previously reported.

Harbinger planned to start a roadshow on Dec. 11 for a $650 million offering of seven-year senior secured notes, as reported by Prospect News.

Deutsche Bank Securities Inc. (855 287-1922) is the dealer manager. D.F. King & Co., Inc. (800 431-9633) is the information agent and the depositary.

The issuer is a New York-based diversified holding company.

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