Appleton Papers extends consent solicitations for 10½%, 11¼% notes

By Angela McDaniels

Tacoma, Wash., July 9 - Appleton Papers Inc. extended the consent solicitations for its 10½% senior secured notes due 2015 and 11¼% second-lien notes due 2015 to 4 p.m. ET on July 12 from 5 p.m. ET on July 10, according to an 8-K filing with the Securities and Exchange Commission.

The consent solicitations began June 27. They are being made in connection with the planned acquisition of the company by Hicks Acquisition Co. II Inc., an entity controlled by Texas leveraged buyout billionaire Thomas O. Hicks Sr.

The company also amended the consent solicitation for the 10½% notes to increase the consent payment to $15.00 for each $1,000 principal amount of notes, and it agreed to use its commercially reasonable efforts to begin a tender offer for the notes within 75 days after the closing of the acquisition at a make-whole price determined using a discount rate equal to Treasuries plus 50 basis points.

The consent payment for the 11¼% notes remains $1.25 for each $1,000 principal amount of notes.

The consent solicitations are conditioned on Appleton receiving consents from at least a majority in principal amount of each series of notes outstanding as of June 26. If successfully made, the amendments to the indentures will permit the acquisition of Appleton by Hicks Acquisition in a $675 million transaction. When the transaction closes, Appleton will do business as "Appvion."

Jefferies & Co., Inc. (888 708-5831) is the solicitation agent. iDeal LLC (888 593-9546) is the information and tabulation agent.

Based in Appleton, Wis., the company develops coating formulations and coating applications to produce thermal, carbonless and security papers and Encapsys products.

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