NEW YORK — A majority of creditors holding Saks Inc. debt agreed to a waiver of default and amendments relating to the retailer’s tender offers and consent solicitations announced last month, the company said Tuesday.
The consents to the debt note amendments and waiver of default include a debt note partially held by a hedge fund that sent out a “notice of default” last month because Saks said it would delay filing its annual report.
Regarding the tender offer, Saks said about $533 million has been tendered so far. The offer involves approximately $1.2 billion worth of debt, which is due over the next five to 19 years.
The retailer said the purchase price on the senior notes is $1,000 per $1,000 principal amount. This includes a consent payment of $20 per $1,000 principal. In a statement, Saks said it “extended the consent payment deadline [as defined in the offers to purchase and consent solicitation statement] for each of these issues of senior notes to midnight on July 18, 2005,” which is when the tender offer expires.
To date, the debt holders have jumped on the offer. Of the notes due 2024, 2011 and 2008, the percent of consents delivered were 59, 97 and 87 percent, respectively. The percent of consents done so far on the notes due 2010, 2013 and 2019 were 57, 93 and 99 percent, respectively.
The retailer said Citigroup Global Markets Inc.; Goldman, Sachs & Co.; Banc of America Securities LLC, and Wachovia Securities are managing the consent solicitations and the tender offers.
This story first appeared in the July 6, 2005 issue of WWD. Subscribe Today.