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Adesa receives consents needed to amend 7 5/8% notes due 2012
By Laura Lutz
Des Moines, April 9 - Adesa, Inc. announced that it received tenders and consents from holders of more than 99% of its 7 5/8% senior subordinated notes due 2012 by the consent deadline in its ongoing offer.
When the offer was announced on March 22, there was $125 million principal amount of the notes outstanding.
The consent solicitation ended at 5 p.m. ET on April 5.
The tender offer will expire at 8 a.m. ET on April 23.
The consents allow the company to amend the notes to eliminate substantially all of the restrictive covenants and some events of default from the note indenture. Adoption of the amendments requires consents from holders of a majority of the notes.
Settlement of the offer depends on conditions including settlement of the merger. Completion of the offer is not a condition of the merger.
The tender offer and consent solicitation are being conducted in connection with the acquisition of Adesa by affiliates of Kelso & Co., GS Capital Partners, ValueAct Capital and Parthenon Capital.
For each $1,000 principal amount of notes tendered, the company will pay an amount cased on the yield of the 4 7/8% U.S. Treasury due May 31, 2008 plus 50 basis points.
The total consideration includes $30 per $1,000 principal amount of notes tendered before the consent deadline at 5 p.m. ET on April 5. Notes tendered after the consent deadline will not receive the consent fee.
Holders who tender notes must submit consents.
Bear, Stearns & Co. Inc. (877 696-BEAR or collect 212 272-5112) is dealer manager. D.F. King & Co., Inc. (888 268-9011 or collect 212 269-5550) is information agent.
Adesa is a Carmel, Ind., provider of wholesale vehicle auctions and used vehicle dealer floorplan financing.
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