Brand Services announces pricing in tender offer for 12% notes

By Laura Lutz

Des Moines, Sept. 11 - Brand Services, Inc. announced the pricing of the tender offer and consent solicitation for its $150 million outstanding 12% senior subordinated notes due 2012.

The company will pay $1,122.18 for each $1,000 principal amount of notes.

The total includes a consent payment of $30.00 per $1,000. Only holders who tendered by the consent deadline will receive this sum.

Brand Services will also pay accrued interest up to but excluding the payment date.

The price is based on the present value of cash flows to the first call date of Oct. 15, 2007, when the securities are callable at $1,060 per $1,000 principal amount, discounted using a rate of 50 basis points - reduced from 62.5 bps - over the yield of the 4% U.S. Treasury note due Sept. 30, 2007.

The reference yield was calculated as 5.016% at 10 a.m. on Sept. 8.

The company had received tenders for 98.67% of the notes as of Sept. 8, unchanged from May 22.

The offer is set to expire on Sept. 22. Originally set for June 7, the deadline has been extended six times, previously to June 28, July 13, July 21, Aug. 1 and Sept. 15.

The pricing date was also been moved, to 10 a.m. ET Sept. 8, from Aug. 31. Before that, pricing was set for June 7, June 28 and July 18.

Brand Services announced the tender offer and consent solicitation on May 9. On May 16, it tightened the spread in the payout.

The consent solicitation allowed the company to amend the note indenture to eliminate nearly all of the restrictive covenants and certain events of default.

Completion of the tender is subject to completion of Brand Services' initial public offering.

Credit Suisse Securities (USA) LLC is dealer manager and solicitation agent (800 820-1653 or call collect 212 538-0652). D.F. King & Co., Inc. is the information agent (800 949-2583).

Brand Services is a Kennesaw, Ga., provider of scaffolding services.

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