Acuity Brands sets purchase price in tender offer for 8.375% notes

By Angela McDaniels

Tacoma, Wash., Dec. 7 - Acuity Brands, Inc. will pay $1,050.91 for each $1,000 principal amount of notes in its tender offer for $200 million of 8.375% notes due 2010, according to a company news release.

The company and Acuity Brands Lighting, Inc. are co-obligors for the notes.

The purchase price was determined at 2 p.m. ET on Dec. 7 using a fixed spread of 20 basis points over the bid-side yield to maturity of the 2.75% U.S. Treasury note due July 31, 2010. The tender offer yield is 0.422%.

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

The tender offer began Dec. 1 and is scheduled to expire at 5 p.m. ET on Dec. 9.

The offer will be funded with the proceeds of a concurrent offering of senior unsecured notes issued by Acuity Brands Lighting. The tender offer is conditioned on Acuity Brands Lighting raising at least $225 million from this offering.

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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