Freedom Group units tender, seek consents for toggle notes, 10¼% notes

By Susanna Moon

Chicago, March 30 - Freedom Group, Inc. said its wholly owned subsidiary FGI Holding Co., LLC and its indirect wholly owned subsidiary FGI Operating Co., LLC each began a tender offer and consent solicitation for a series of notes.

FGI Holding is tendering for its $245.2 million principal amount of 11¼%/11¾% senior pay-in kind notes due 2015.

In a separate offer, FGI Operating is tendering for its $247.5 million principal amount of 10¼% senior secured notes due 2015.

Each company also is soliciting consents of holders of a majority of the notes to eliminate substantially all of the restrictive covenants, events of default and certain other provisions. In addition, FGI Operating is seeking the consent of a 66 2/3% supermajority of holders to release the liens securing the 10¼% notes.

The total purchase for each $1,000 principal amount will be $1,055.00 for the toggle notes and $1,074.34 for the 10¼% notes. The total payment includes a $30.00 premium per $1,000 of notes tendered by the consent deadline on April 13.

Holders also will receive accrued interest to but excluding the payment date.

The tender offers will end at 11:59 p.m. ET on April 27. Tendered notes may be withdrawn by the earlier of the consent deadline and the date on which the company amends the notes.

Those who tender their notes after the consent deadline will not receive the early tender premium.

The companies expect to settle the notes promptly after the offers end. They may settle early tendered notes at any time after the consent deadline.

Each tender offer is conditioned on receiving consents of holders representing a majority of each series of notes and on the companies obtaining the financing needed to fund the offers.

Bank of America Merrill Lynch (888 292-0070 or collect 646 855-3401), Deutsche Bank Securities (866 627-0391 or collect 212 250-2955) and RBC Capital Markets (877 381-2099 or collect 212 618-7822) are the dealer managers and solicitations agents.

Freedom Group is a Madison, N.C.-based firearms 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.