Acuity Brands launches cash tender offer for $200 million 8.375% notes

By Susanna Moon

Chicago, Dec. 1 - Acuity Brands, Inc. said it began a tender offer to purchase for cash any and all of the outstanding $200 million of 8.375% notes due 2010, for which the company and Acuity Brands Lighting, Inc. are co-obligors.

The tender offer is scheduled to expire at 5 p.m. ET on Dec. 9.

Funding for the offer will come from proceeds of a concurrent offering of senior unsecured notes of wholly owned subsidiary Acuity Brands Lighting.

The purchase price for each $1,000 principal amount will be based on a fixed spread of 20 basis points over the bid-side yield to maturity of the 2.75% U.S. Treasury notes due July 31, 2010. The pricing date for the Treasury reference security will be 2 p.m. ET on Dec. 7.

Acuity also will pay accrued interest up to but excluding the settlement date.

The tender offer is conditioned on Acuity Brands Lighting raising at least $225 million from its offering of senior unsecured notes.

The settlement date is expected to be the first business day after the tender deadline.

J.P. Morgan Securities Inc. (866 834-4666 or 212 834-3506) and Banc of America Securities LLC (888 292-0070 or 980 388-4603) are the dealer managers. Global Bondholder Services Corp. (866 794-2200 or 212 430-3774) is the depositary and information agent for the tender offer.

Atlanta-based Acuity Brands produces lighting fixtures.

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