Brand Services once more extends tender for 12% notes

By Jennifer Chiou

New York, June 14 - Brand Services, Inc. said it again extended the tender offer for its $150 million of 12% senior subordinated notes due 2012, this time to 5 p.m. ET on July 13.

The expiration previously was 5 p.m. ET on June 28 and before that 5 p.m. ET on June 7.

Pricing will now be set at 10 a.m. ET on June 28, instead of 10 a.m. ET on June 14.

As of 5 p.m. ET on June 13, holders of 98.67% of the securities had tendered their notes unchanged from the consent deadline of 5 p.m. ET on May 22, when it received enough consents to amend the note indenture.

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

As revised, for each $1,000 principal amount of notes, the company is offering 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 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 consent solicitation is to amend the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

Completion of the tender is subject to completion of Brand Services' initial public offering and the receipt of consents from holders of a majority of the notes.

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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