Edcon takes tenders for €753.71 million notes in oversubscribed offer

By Susanna Moon

Chicago, Feb. 13 - Edcon Proprietary Ltd. said that investors tendered €974,046,000 of its floating-rate senior secured notes due June 15, 2014 in the offer that ended at 11 a.m. ET on Feb. 12 and that it accepted for purchase €753,713,000 of the notes.

As a result, the pro-ration factor for the note purchase will be 77.51718%, according to a company press release.

There will be €387.64 million of the floaters outstanding after the offer ends.

Edcon increased the tender offer cap to €753,713,000 "for the avoidance of doubt," the release noted.

The company said on Feb. 5 that it was tendering for up to €700 million of its €1,141,353,000 floaters with a coupon is Euribor plus 325 basis points.

As noted before, the purchase price will be 100.1 along with accrued interest.

The company plans to settle the notes on Feb. 14.

The tender is subject to a financing condition. Edcon said it intends to issue euro-denominated and/or dollar-denominated senior secured notes.

The company priced €300 million of 9½% notes due March 1, 2018 at 96.5 to yield 10.415% on Feb. 11.

The dealer manager for the tender offer is Goldman Sachs International (44 20 7774 4799 or liabilitymanagement.eu@gs.com). The tender agent is Lucid Issuer Services Ltd. (44 20 7704 0880 or edcon@lucid-is.com, attn: Sunjeeve Patel/David Shilson).

Johannesburg-based Edcon, doing business as Jet Stores, operates clothing, shoes and accessories stores in South Africa, Botswana, Lesotho, Namibia and Swaziland.

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