Simmons Foods announced a cash tender offer to purchase any and all of its outstanding $315 million senior bonds carrying a 10.50% coupon rate and due in 2017.
This tender offer is slated to expire Oct. 15, unless extended. Simmons said it will pay $1,058.75 per $1,000 bond which includes a $30 consent payment if delivered by Sept. 30. Bonds tendered after the consent date will earn $1,028.75 per $1,000 in principal and accrued interest up to the date of tender.
The company’s consent solicitation seeks to eliminate a significant portion of the restrictive covenants and release all of the collateral securing the obligations of Simmons and the guarantors as well as amend the time requirement that Simmons has to send a notice of redemption.
Simmons said it must get a two-thirds majority consent and early tender of the outstanding bonds to release the collateral securing the debt.
Wells Fargo Securities is acting as dealer manager and solicitation agent for the tender offer and the consent solicitation.