JLG Industries last week set the pricing for its previously announced cash tender offers and consent solicitations in respect of its outstanding 8 ¼-percent senior notes due 2008 and its 8 3/8-percent senior subordinated notes due 2012.
The total consideration for the 2008 notes assumes a payment date of Dec. 6, 2006, and using the yield of the 4 7/8-percent U.S. Treasury note due April 30, 2008, plus a fixed spread of 50 basis points. The yield on the 2008 Reference Security, as calculated by J.P. Morgan Securities and Banc of America Securities LLC, was 4.873 percent. Accordingly, the total consideration, excluding accrued and unpaid interest, for each $1,000 principal amount of 2008 notes validly tendered and not withdrawn at or prior to 5 p.m., New York City time, on Nov. 21, 2006, is $1,038.29, which includes a consent payment of $30. The tender offer consideration, excluding accrued and unpaid interest, for each $1,000 principal amount of 2008 notes validly tendered after Nov. 21, but at or prior to midnight, New York City time, Dec. 5, 2006, is $1,008.29, which equals the total consideration less the consent payment.
The total consideration for the 2012 notes assumes a payment date of Dec. 6, 2006, and using the yield of the 3 ½-percent U.S. Treasury note due May 31, 2007, plus a fixed spread of 50 basis points. The yield on the 2012 Reference Security, as calculated by J.P. Morgan Securities and Banc of America Securities, was 5.096 percent. Accordingly, the total consideration, excluding accrued and unpaid interest, for each $1,000 principal amount of 2012 notes validly tendered and not withdrawn at or prior to the consent deadline is $1,054.84, which includes a consent payment of $30. The tender offer consideration, excluding accrued and unpaid interest, for each $1,000 principal amount of 2012 notes validly tendered after the consent deadline but at or before the expiration time is $1,024.84, which equals the total consideration less the consent payment.
The tender offers are scheduled to expire at midnight New York City time on Dec. 5, 2006, unless extended or earlier terminated by JLG.
The information agent for the offers and consent solicitations is Innisfree M&A Inc. The depositary for the offers is The Bank of New York. The dealer managers for the offers and consent solicitation agents for the consent solicitations are J.P. Morgan Securities and Banc of America Securities.
