HILLS TO ASK HOLDERS TO WAIT
NEW YORK — Hills Stores Co. said Thursday it will ask senior noteholders to defer the early redemption date on its 10.25 percent notes 15 months to July 1998.
Hills is currently obligated to offer to redeem the 10.25 notes on May 5, 1997, as a result of a change in control of the company in July. The notes become due in 2003.
The company noted that although it intends to refinance the notes prior to May 1997, the proposed deferral would give it “additional flexibility” to choose the best time to redeem the notes.
Hills said it would pay noteholders a fee equal to 5 percent of the principal if they agree to defer.