Pantry marks early tenders for 90.2% of 7¾% notes due 2014

By Jennifer Chiou

New York, Aug. 3 - Pantry, Inc. announced the receipt of early tenders and consents for $199,856,000, or 90.2%, of its 7¾% senior subordinated notes due 2014.

The company has executed a supplemental indenture.

A tender offer and consent solicitation for the notes began July 20.

As previously announced, the Pantry is soliciting consents to amend the notes to eliminate most of the restrictive covenants.

The total purchase price is $1,003.75 per $1,000 principal amount of notes, including a consent premium of $10.00 for notes tendered by the early tender deadline at 5 p.m. ET on Aug. 2.

Holders also will receive accrued interest up to but not including the payment date, which was Aug. 3 for early tendered notes.

The tender offer will end at 11:59 p.m. ET on Aug. 16.

Those who tender after the early deadline will receive only the base payment of $993.75 per $1,000 principal amount plus accrued interest.

Tendered notes may not be withdrawn after execution of the supplemental indenture.

The offer is conditioned on the completion of one or more financing transactions with enough proceeds to fund the offer. The consent solicitation is conditioned on receiving consents from holders of a majority of the notes, but the tender offer is not conditioned on receipt of those consents, the release noted.

Notes purchased under the offer will be canceled.

Pantry said it expects to redeem any notes that remain outstanding after the tender offer ends.

The dealer managers are Bank of America Merrill Lynch (888 292-0070 or collect 646 855-3401) and Wells Fargo Securities (866 309-6316 or collect 704 715-8341). The information agent is Global Bondholder Services Corp. (866 924-2200 or collect 212 430-3774).

Pantry is a Cary, N.C.-based operator of a chain of convenience stores.

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