Dakota City, NE - IBP, Inc.and Foodbrands America, Inc. announced that IBP has successfully completed its tender offer for all $115,050,000 outstanding principal amount of Foodbrands' 10 3/4% Senior Subordinated Notes due 2006 and the concurrent consent solicitation by Foodbrands.
As of 12:00 midnight, New York City time, on March 25, 1998, the expiration of the tender offer, $109,715,000 in aggregate principal amount of Notes has been validly tendered pursuant to the Offer to Purchase and Consent Solicitation Statement. IBP is the beneficial owner of all $5,335,000 principal amount of Notes not tendered in the Offer. IBP has accepted for payment and will promptly pay for all Notes validly tendered in the Offer, leaving all of the Notes beneficially owned by IBP.
The Total Consideration (as defined in the Offer) for each $1,000 principal amount of Notes validly tendered pursuant to the Offer is $1,220.56. Such consideration was calculated based on a tender offer yield of 5.907% which is the sum of the yield determined at 2:00 p.m., New York City time, on March 20, 1998, for the 8.00% U.S. Treasury Note due May 15, 2001 plus 35 basis points and includes payment of accrued and unpaid interest up to, but not including, the payment date, which is expected to be today.
Meat Industry Insights News Service
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