NOTEHOLDERS AGREE TO ALTER TERMS FOR HILLS
CANTON, Mass. — Hills Stores Co. said Friday its has reached an agreement with major holders of its 10.25 percent senior notes to change the terms of the note holder consent solicitation.
Under the agreement, note holders will now receive a consent fee of 1.25 percent of principal and a separate fee of 5.5 percent of principal in exchange for a 14-month deferral, until July 8, 1998.
The note holders will also receive an increased rate of interest until Hills completes a change-of-control redemption.
Hills is currently obligated to offer to redeem the 10.25 percent notes on May 5, 1997, as a result of a change in control of the company in July. The notes become due in 2003.
— Fairchild News Service