Barney's extends tender for 9% notes

New York, Dec. 13 - Barney's Inc. said it extended its tender offer for its 9% senior secured notes due 2008 to 10 a.m. ET on Dec. 20 from 11:59 p.m. ET on Dec. 15.

The purchase price for the notes will now be fixed at 2 p.m. ET on Dec. 14.

At its previous announcement on Dec. 6, Barney's said it received the necessary consents to amend the indenture and security agreements for its 9% notes.

However the amendments will only become operative when it buys the notes in its tender offer.

The tender is subject to conditions, including the now fulfilled requirement that it receive consents from holders of at least a majority of the principal amount at maturity of the notes, and the completion of the acquisition of New York-based luxury retailer Barneys New York Inc. by Jones Apparel Group Inc.

Barney's announced that it was tendering for the notes and seeking consents on Nov. 17.

The tender offer runs through 11:59 p.m. ET on Dec. 15 - now extended - and the early consent date, now expired, was Dec. 1.

For each $1,000 principal amount at maturity of the notes, Barney's will pay the present value of the notes' $1,029.77 redemption price on their first call date of April 1, 2006 plus the present value of all scheduled interest payments from the initial payment date until April 1, 2006, discounted at 50 basis points over the yield on the 1.50% U.S. Treasury note due March 31, 2006.

Accrued interest from the last interest payment date to but not including the initial payment date and the consent payment will be subtracted from this figure. The reference yield will be calculated at 2 p.m. ET on the third business day before the notes are first accepted for payment.

Holders who tender by the consent date will receive a consent payment of $30 per $1,000 principal amount at maturity.

Citigroup is dealer manager and solicitation agent (800 558-3745 or 212 723-6106). Global Bondholder Services Corp. is the information agent (866 470-4200).

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