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Del Laboratories calls floaters, 8% notes due to merger
By Jennifer Chiou
New York, Dec. 31 - Del Laboratories, Inc. will redeem all of its $185 million of senior secured floating-rate notes due 2011 and $175 million of 8% senior subordinated notes due 2012, according to an 8-K filing with the Securities and Exchange Commission.
On Dec. 6, Del's indirect parent company, DLI Holding Corp., entered into an agreement and plan of merger with DLI Holding LLC, Coty Inc. and Bella Acquisition, Inc. under which DLI will merge with and into Bella and DLI will continue as a wholly owned subsidiary of Coty.
Assuming completion of the merger by Jan. 4, the redemption date for the floaters is slated for Jan. 7. In the case that the floaters have not been redeemed or that the merger is terminated prior to Feb. 5, the redemption will automatically be rescinded.
The floaters will be redeemed at 102% plus accrued interest to the redemption date.
As already reported, under the agreement, Coty had the right to request DLI to redeem the 8% notes.
The 8% notes will be redeemed on Feb. 1, assuming the merger is completed by Jan. 31. The redemption price will be 104% plus accrued interest.
On Dec. 7, the company said that its merger agreement will constitute a change of control and will trigger the repayment obligations under the senior ABL credit facility as well as an offer to purchase the floaters and 8% notes.
Del Laboratories is a Uniondale, N.Y.-based producer of cosmetics.
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