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CST: 18/11/2019 05:00:52   

AMERICAN GREETINGS CORPORATION ANNOUNCES LAUNCH OF TENDER OFFER AND CONSENT SOLICITATION FOR 7.875% SENIOR NOTES DUE 2025

270 Days ago

Cleveland, Ohio, Feb. 20, 2019 (GLOBE NEWSWIRE) -- American Greetings Corporation (“American Greetings” or the “Company”) today announced that it has commenced a tender offer (the “Tender Offer”) to purchase for cash any and all of its outstanding 7.875% Senior Notes due 2025 (the “Notes”). In conjunction with the Tender Offer, the Company is soliciting (the “Consent Solicitation”) consents (“Consents”) to the adoption of certain proposed amendments to the indenture (the “Indenture”), dated as of February 16, 2017, between American Greetings Corporation and The Huntington National Bank, as trustee (the “Trustee”), to, among other things, eliminate substantially all of the restrictive covenants, certain events of default and other related provisions (the “Proposed Amendments”). The pricing terms for the Tender Offer are set forth in the table below.

CUSIP Nos. Outstanding
Principal
Amount
Issuer Title of Security Purchase
Price (1)(2)
Consent
Payment (1)(2)
Total
Consideration (1)
026375 AQ8

U02642 AB9
$17,530,000 American Greetings
Corporation
7.875% Senior Notes
due 2025
87.75% of the
principal amount
0.25% of the
principal amount
88% of the
principal amount

(1)     Per $1,000 principal amount of Notes and excluding accrued interest, which will be paid in addition to the Total Consideration or Purchase Price, as applicable, up to, but not including, the Payment Date (as defined below).
(2)     Included in Total Consideration.

The Tender Offer will expire at 12:00 a.m., New York City time, on March 19, 2019 (which is the end of the day on March 19, 2019), unless extended (such time and date, as the same may be extended, the “Expiration Time”). Holders of Notes (the “Holders”) must validly tender (and not validly withdraw) their Notes and validly deliver (and not validly revoke) their corresponding Consents at or prior to 5:00 P.M., New York City time, on March 5, 2019, unless extended (such time and date, as the same may be extended, the “Consent Time”), to be eligible to receive the Total Consideration, which includes the Consent Payment, as set forth in the table above. Holders who tender their Notes and deliver their Consents after the Consent Time and prior to the Expiration Time will be eligible to receive the Purchase Price as set forth in the table above, but not the Consent Payment. Tendered Notes may be withdrawn and Consents may be revoked at or prior to the “Withdrawal Deadline”, which is the earlier of (a) the “Effective Time” (as defined below) and (b) the Expiration Time. The Company intends to execute a supplemental indenture to the Indenture containing the proposed amendments promptly following the receipt of the Requisite Consents (as defined below). The time and date on which the supplemental indenture is executed is referred to as the “Effective Time”. The Effective Time may occur prior to the Consent Time. Delivery of Consents by Holders of at least a majority of the outstanding aggregate principal amount of the Notes is required for the adoption of the Proposed Amendments related to the Notes (the “Requisite Consents”). A Holder cannot deliver a Consent to the Proposed Amendments in the Tender Offer without tendering the corresponding Notes, or tender its Notes without delivering a corresponding Consent.

Upon the terms and conditions described in the Offer to Purchase and Consent Solicitation Statement (as defined below) and the related Consent and Letter of Transmittal, payment for Notes accepted for purchase in Tender Offer will be made (1) with respect to Notes validly tendered and not validly withdrawn at or prior to the Consent Time, promptly after acceptance of such Notes for purchase, which will occur promptly following the satisfaction or waiver of the conditions to the Tender Offer (the “Initial Payment Date”), and (2) with respect to Notes validly tendered after the Consent Time but at or before the Expiration Time, promptly after acceptance of such Notes for purchase, which will occur promptly following such Expiration Time (the “Final Payment Date” and together with the Initial Payment Date, each, a “Payment Date”). We currently expect the Initial Payment Date for the Notes to be March 6, 2019.

The Tender Offer and Consent Solicitation may be amended, modified or terminated by the Company and the Company retains the sole discretion to accept Notes for payment and Consents with respect to Notes.

In addition to the Total Consideration or Purchase Price, as applicable, holders of Notes tendered and accepted for payment will receive accrued and unpaid interest on such Notes from the last interest payment date for the Notes up to, but not including, the applicable Payment Date.

The Tender Offer is subject to the satisfaction or waiver of certain other conditions as set forth in the Offer to Purchase and Consent Solicitation Statement.

The Company has entered into a repurchase and consent agreement with a certain Holder of the Notes (the “Consenting Party”), pursuant to which the Consenting Party has agreed to support the Tender Offer and the Proposed Amendments by tendering into the Tender Offer and providing its Consent to the adoption of the Proposed Amendments with respect to an amount of Notes representing greater than a majority of the outstanding principal amount of Notes, which would constitute the Requisite Consents necessary to approve the Proposed Amendments even if all other Holders of Notes did not tender their Notes and provide their Consents to the Proposed Amendments.

This announcement is not an offer to sell or purchase, or a solicitation of an offer to sell or purchase, securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom, such an offer, solicitation or sale would be unlawful. The Tender Offer and Consent Solicitation is only being made pursuant to the terms and conditions of the Offer to Purchase and Consent Solicitation Statement, dated February 20, 2019 (as supplemented by the additional information described below and as may be further amended or supplemented from time to time, the “Offer to Purchase and Consent Solicitation Statement”) and the related Consent and Letter of Transmittal.

Certain information about the Company has been provided to holders of the Notes on the reporting website for the Notes.

Copies of the Offer to Purchase and Consent Solicitation Statement, the Letter of Transmittal and Consent and other related documents may be obtained from The Huntington National Bank, the Information Agent and Tender Agent, at (614) 331-8698, or email at corporatebondops@huntington.com. Holders of the Notes are urged to review the Offer to Purchase and Consent Solicitation Statement, the Letter of Transmittal and Consent for the detailed terms of the Tender Offer and Consent Solicitation and the procedures for tendering Notes and delivering consenting to the proposed amendments. Any persons with questions regarding the Tender Offer and Consent Solicitation should contact the Information Agent and Tender Agent at the contact information listed above.

About the Company

As the leader in meaningful connections, American Greetings is committed to making the world a more thoughtful and caring place. Founded in 1906, the creator and manufacturer of innovative social expression products offers paper cards, digital greetings, gift wrap, party goods and more to help consumers honor the people and moments in life that really matter. The Company's major greeting card brands are American Greetings, Papyrus, Recycled Paper Greetings and Carlton Cards. AmericanGreetings.com lets consumers shop and buy paper cards, ecards, printables, party supplies and gift wrap—along with providing useful content that educates and inspires visitors to connect more meaningfully. The 113 year-old Company is headquartered in Cleveland, Ohio, and its products can be found in retail outlets worldwide. For more information, please visit www.americangreetings.com/corporate.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain information that includes or is based upon forward-looking statements. Forward-looking statements give expectations or forecasts of future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “potential,” and “will,” and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results.

Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the actual future results of the Company, its subsidiaries and affiliates. These statements are based on current expectations and the current economic environment. They involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements. Risks, uncertainties, and other factors that might cause such differences include the risks, uncertainties and other factors identified herein, including, without limitation, that the Tender Offer and Consent Solicitation may not be completed on the current terms or at all, that our cost-savings initiatives may not be successful, that the Company will not be able to spread risk as broadly as anticipated, that the Company will not be able to generate cash flow and earnings as anticipated and that the Company may not continue its track record of success. The Company does not undertake any obligation to publicly correct or update any forward-looking statement if the Company later becomes aware that such statement is not likely to be achieved.

Ethan Spencer
American Greetings
216.252.4864
investor.relations@amgreetings.com

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