Advantica extends exchange offer for notes for fifth time

New York, Feb. 20 - Advantica Restaurant Group, Inc. again extended its exchange offer for its senior notes, moving the expiration date back to 5.00 p.m. ET on Feb. 22 from 5.00 p.m. ET on Feb. 19. The offer had originally been set to expire on Feb. 1 but has now been extended five times.

Early Wednesday, Advantica said $64.8 million of the notes had been tendered in the exchange, slightly up from $64.1 million at the last report a week earlier.

The Spartanburg, S.C. restaurant company is offering to exchange up to $204.1 million of new registered 12.75% senior notes due 2007 to be jointly issued by Denny's Holdings, Inc. and Advantica for up to $265.0 million of its existing 11.25% senior notes due 2008. There are $529.6 million principal amount of the old notes outstanding.

Apart from the expiration date, no other changes were made to the exchange.

The exchange plan has run into opposition from bondholders who have organized an unofficial committee to fight the proposal.

The committee previously said it had support of holders of approximately $400 million principal amount of the notes. That would appear to be sufficient to block the exchange since Advantica's offer is subject to at least $160 million of the $529.6 million outstanding notes being tendered.

The noteholders have told the company that they are not opposed to a deleveraging transaction of some type but believe "the elimination of $60 million in principal proposed by Advantica is not appropriate or fair to bondholders."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.