Watco receives tenders for 72% of 6 3/8% notes, calls remainder

By Rebecca Melvin

New York, June 18 – Watco Cos. LLC and its subsidiary Watco Finance Corp. said $289,742,000, of its 6 3/8% senior notes due 2023 (Cusips: 941130AA4 and U94127AA2) were validly tendered by the tender deadline on June 17.

That amount represented 72.44% of the $400 million principal amount of notes outstanding.

Settlement is expected on June 18, and payment for notes tendered under guaranteed delivery procedures is slated for June 22.

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

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

Additionally, Watco announced that it will redeem all of the remaining outstanding notes on July 20. The notes will be redeemed at $1,010.63 per $1,000 principal amount plus accrued interest.

Watco expects to fund the tender with the proceeds from an offering of new senior notes.

The tender offer for any and all of the notes was announced on June 11.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-2045) 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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