Metaldyne to tender for 11%, 10% notes

By Angela McDaniels

Seattle, Sept. 1 - Metaldyne Corp. will hold a tender offer for its 11% senior subordinated notes due 2012 and 10% senior subordinated notes due 2014, according to a company news release.

The company will also seek a waiver of the bonds' change-of-control provisions.

The tender consideration will equal the price of the 11% notes during the recent, pre-announcement period. The company seeks to purchase at least $225 million of notes.

All $31.7 million in outstanding principal amount of the 10% notes are held by DaimlerChrysler Corp.

The tender offer and waiver solicitation are being held in connection with the company's upcoming acquisition by Asahi Tec Corp. The merger is conditioned upon, among other things, the receipt of consents and waivers from the bondholders and successful completion of the tender offer.

Any notes that remain outstanding after the tender offer will not benefit from any new guarantees or other credit support from Asahi Tec or any of its subsidiaries, according to the release. Additionally, Asahi Tec may elect not to close if Metaldyne's rating for senior term debt is lowered below certain levels and its interest cost for that debt exceeds certain levels.

Metaldyne is based in Plymouth, Mich., and designs and supplies metal-based components, assemblies and modules for transportation-related powertrain and chassis applications.

© 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.