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Packaging Dynamics Corporation Announces Close of Tender Offer and Redemption of Notes

July 18, 2014

CHICAGO, July 18, 2014 /PRNewswire/ — Packaging Dynamics Corporation (“Packaging Dynamics”) today announced the expiration of its offer to purchase up to $64,912,000.00 of its outstanding 8.750% Senior Secured Notes due 2016 (the “Notes”) at a price equal to $1,000.00 per $1,000 principal amount of the Notes tendered, plus accrued and unpaid interest on such Notes to the settlement date (the “Offer”). The Offer, made pursuant to an Offer to Purchase, dated as of June 18, 2014 and a related Letter of Transmittal, expired at 11:59 p.m., New York City time, on July 17, 2014, with no note holders accepting the Offer. The Company may now use the remaining Excess Sale Proceeds for general corporate purposes, subject to other covenants contained in the Indenture.

The Company also announced today that it will redeem for cash outstanding Notes in an aggregate principal amount of $85,000,000.00, pursuant to the “Optional Redemption” provision of the indenture governing the Notes. The redemption date for the outstanding Notes will be August 18, 2014 (the “Redemption Date”) and the redemption price will be 102.188% of the principal amount of the Notes. The Company will deliver, by the Redemption Date, to the applicable trustee for their respective series of Notes, in trust amounts sufficient to pay the redemption price, plus accrued and unpaid interest up to the Redemption Date, for all such Notes, thereby satisfying and discharging their obligations under such Notes in full as of the date the applicable trustee has received such funds.

The notice of redemption for the Notes will be sent to registered holders on or about July 18, 2014. The Notes are to be surrendered to U.S. Bank National Association, as trustee, in exchange for payment of the redemption price, plus accrued and unpaid interest up to the Redemption Date. Questions relating to, and requests for additional copies of, the notice of redemption for the Notes should be directed to U.S. Bank National Association, via telephone at 800-934-6802.

This announcement is for informational purposes only, and is not an offer to purchase or a solicitation of an offer to purchase with respect to any of the Notes. The Offer was made solely by means of the Offer to Purchase. The Offer does not constitute an offer to purchase any Notes in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such offer under applicable securities or “blue sky” or other laws. No dealer, salesperson or other person has been authorized to give any information or to make any representation not contained in the Offer and, if given or made, such information or representation may not be relied upon as having been authorized by the Company or the Tender Agent.

About Packaging Dynamics

Packaging Dynamics is a leading flexible packaging company and is a portfolio company of private investment firm Kohlberg & Company. For more information, visit our website at www.pkdy.com.

SOURCE Packaging Dynamics Corporation


Source: PR Newswire



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