AGT starts tender, consent bid for $200 million 5 7/8% notes due 2021

By Susanna Moon

Chicago, Jan. 7 – AGT Food and Ingredients Inc. began a tender offer and consent solicitation for its $200 million of 5 7/8% senior notes due Dec. 21, 2021.

AGT is soliciting consents from holders of a majority of the notes indenture to eliminate substantially all of the restrictive and reporting covenants and events of default as well as other provisions, according to a company announcement.

The early deadline is 5 p.m. ET on Jan. 22. The tender offer will remain open until 5 p.m. ET on Feb. 4.

The payment date is expected to occur within three business days after the offer ends.

The purchase price for each $1,000 principal amount will be $1,015 for early tendered notes and $1,010 for notes tendered after the early deadline.

Holders will also receive accrued interest up to excluding the payment date.

The tender offer is conditioned on the acquisition of AGT by a group led by AGT’s president and chief executive officer, Murad Al-Katib, for all of the common shares of AGT not already held by the group for $18.00 per share in cash by June 4, the release said.

Holders who tender notes must give their consents to the proposed amendments and they may not deliver consents without also tendering their notes.

Scotia Capital Inc. (416 863-7438) is the dealer manager and solicitation agent. D.F. King & Co. Inc. (647 351-3085) is the information agent.

AGT is a Regina, Sask. processor of value-added pulses, staple foods and ingredients for export and domestic markets as well as a supplier of retail packaged and canned foods to retail and food service sectors.

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