Reichhold extends exchange offer for 9% notes due 2014 for third time

By Angela McDaniels

Tacoma, Wash., May 1 - Reichhold Industries, Inc. extended the exchange offer and consent solicitation for its 9% senior notes due 2014 to 5 p.m. ET on May 2 from 5 p.m. ET on May 1, according to a company news release.

The company said it extended the offer so noteholders have more time to review the information in the supplement that it distributed on April 30.

Holders had tendered $193.6 million principal amount, or 99.31%, of the notes as of 5 p.m. ET on April 30. This amount is unchanged from April 19.

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

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 began March 22. On April 20, the company extended the expiration to 5 p.m. ET on April 26 from April 19 in order to finalize an amendment to its credit agreement. On April 27, it extended the expiration to 5 p.m. ET on May 1 in order to continue to finalize the amendment and to provide the noteholders with additional information.

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.

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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