Watco tenders for outstanding $400 million 6 3/8% notes due 2023

By Rebecca Melvin

New York, June 11 – Watco Cos. LLC and its subsidiary Watco Finance Corp. announced a cash tender offer to purchase any and all of its outstanding $400 million 6 3/8% senior notes due 2023 (Cusips: 941130AA4 and U94127AA2).

The offer will end at 5 p.m. ET on June 17.

Holders who validly tender their notes under the guaranteed delivery procedures must tender their notes no later than 5 p.m. ET on June 19.

The tender offer consideration for each $1,000 principal amount of notes will be $1,013.20 plus accrued and unpaid interest from the most recent interest payment date to, but not including, the payment date, according to a company news release.

Watco expects the payment for notes delivered under the guaranteed delivery procedures to occur on June 22.

Watco expects to fund the tender with the proceeds of at least $500 million from an offering of new senior notes.

J.P. Morgan Securities LLC (866 834-4666 toll free or 212 834-2045 collect) is acting as dealer manager.

The tender agent and information agent is D.F. King & Co., Inc. (212 269-5550 for banks or brokers, 800 398-1247 for all others, or watco@dfking.com).

The company is an integrated transportation services provider based in Pittsburg, Kan.

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