Reichhold launches exchange offer, consent solicitation for 9% notes

By Angela McDaniels

Tacoma, Wash., March 22 - Reichhold Industries, Inc. launched an exchange offer and consent solicitation for its 9% senior notes due 2014, according to a company news release.

The company is offering new 9%/11% senior secured notes due 2017 in a principal amount equal to the principal amount of the exchanged notes plus accrued interest.

The exchange offer is conditioned on the holders of not less than 98% of the 9% notes agreeing to exchange their notes.

As part of the exchange offer, the company is soliciting consents to remove substantially all of the restrictive covenants under the note indenture.

The exchange offer will expire on April 19.

The company said that if consummated, the exchange offer will significantly reduce its cash debt service obligations and provide it with enhanced financial, operational and strategic flexibility.

The company will have the option to pay interest on the new notes in kind for the first two years following the exchange offer.

Reichhold supplies resins for the industrial, transportation, building and construction, marine, consumer and graphic arts markets. It is based in Research Triangle Park, N.C.

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