LaBranche & Co Inc. Receives Consents From Holders of Over 92% of its 9-1/2% Senior Notes Due 2004 and 94% of its 12% Senior Sub
20 April 2004 - 10:45PM
PR Newswire (US)
LaBranche & Co Inc. Receives Consents From Holders of Over 92%
of its 9-1/2% Senior Notes Due 2004 and 94% of its 12% Senior
Subordinated Notes Due 2007 Pursuant to its Tender Offer and
Consent Solicitation NEW YORK, April 20 /PRNewswire-FirstCall/ --
LaBranche & Co Inc. announced today that, based on information
received from the depositary in the company's current tender offer
and consent solicitation, it has received consents from holders of
more than 92% of its outstanding 9-1/2% Senior Notes due 2004 in
the aggregate principal amount of $100.0 million ("9- 1/2% Notes")
(CUSIP No. 505447AB8) and more than 94% of its outstanding 12%
Senior Subordinated Notes due 2007 in the aggregate principal
amount of $250.0 million ("12% Notes," and together with the 9-1/2%
Notes, the "Notes") (CUSIP No. 505447AD4). The consents are
sufficient to effect the proposed amendments to the indentures
governing the Notes as set forth in the company's Offer to Purchase
and Consent Solicitation Statement dated April 5, 2004, pursuant to
which the tender offer and the consent solicitation are being made.
To be eligible to receive the consent payment relating to the
Notes, holders were required to consent to the proposed amendments
on or prior to 5:00 p.m., New York City time, on Monday, April 19,
2004 (the "Consent Date"). The company will proceed to execute a
supplemental indenture effecting the proposed amendments to the
indenture governing each series of Notes. The supplemental
indenture with respect to each series of Notes will become
operative only if the company accepts the Notes of such series for
payment pursuant to the terms of the tender offer (except that
certain provisions will become operative, and will be binding on
all holders of such Notes, immediately upon the execution of such
supplemental indenture, as described more fully in the Offer to
Purchase and Consent Solicitation Statement). When the remaining
amendments to the indenture governing each series of Notes become
operative, they will be binding on the holders of Notes of such
series not tendered for purchase in the tender offer. The tender
offer expires at midnight, New York City time, on May 3, 2004,
unless extended or earlier terminated. The closing of the tender
offer is subject to certain conditions with respect to each series
of Notes, including receipt by the company of gross proceeds from
the sale of new senior notes sufficient to finance the purchase of
Notes of such series in the tender offer. The company's obligation
to purchase either series of Notes in the tender offer is not
conditioned on the purchase of the other series of Notes. The
consideration for the 9-1/2% Notes tendered will be calculated as
of 10:00 a.m., New York City time, on April 20, 2004, based on a
fixed-spread pricing formula. The consideration for the 12% Notes
tendered will be the price set forth in the Offer to Purchase and
Consent Solicitation Statement. Subject to the satisfaction of the
conditions to the tender offer, the payment date for the Notes will
be promptly following the expiration date. The Company has retained
Credit Suisse First Boston LLC to serve as the Dealer Manager and
Solicitation Agent for the tender offer and the consent
solicitation. Requests for documents may be directed to Morrow
& Co., Inc., the Information Agent, by telephone at (800)
607-0088 (toll-free) or (212) 754-8000 (collect), or by e-mail at .
Questions regarding the tender offer may be directed to Credit
Suisse First Boston, at (800) 820-1653 (toll-free) or (212)
538-4807 (collect). This press release is not an offer to purchase,
a solicitation of an offer to sell or a solicitation of consent
with respect to any securities. The offer is being made solely by
the Offer to Purchase and Consent Solicitation Statement and
related Consent and Letter of Transmittal dated April 5, 2004. The
new senior notes or other securities that may be offered by the
company to finance the purchase of the Notes in the tender offer
will be offered pursuant to an exemption from registration under
the Securities Act of 1933. Such securities will not be registered
under the Securities Act and, accordingly, may not be offered or
sold in the United States absent registration under the Securities
Act or an applicable exemption from the registration requirements.
Founded in 1924, LaBranche is a leading Specialist firm. The
Company is the Specialist for more than 650 companies, seven of
which are in the Dow Jones Industrial Average, 30 of which are in
the S&P 100 Index and 103 of which are in the S&P 500
Index. In addition, LaBranche acts as the Specialist in over 200
options. Certain statements contained in this release, including
without limitation, statements containing the words "believes,"
"intends," "expects," "anticipates," and words of similar import,
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Readers are
cautioned that any such forward-looking statements are not
guarantees of future performance, and since such statements involve
risks and uncertainties, the company's actual results and
performance and the industry may turn out to be materially
different from the results expressed or implied by such
forward-looking statements. Given these uncertainties, readers are
cautioned not to place undue reliance on such forward-looking
statements. The company also disclaims any obligation to update its
view of any such risks or uncertainties or to publicly announce the
result of any revisions to the forward-looking statements made in
this release. DATASOURCE: LaBranche & Co Inc. CONTACT: Larry
Prendergast, Executive Vice President of Finance, or Harvey S.
Traison Senior Vice President & Chief Financial Officer, both
of LaBranche & Co Inc., +1-212-425-1144; or Investors - Michael
Polyviou, Media - Brian Maddox or Scot Hoffman, all of Financial
Dynamics, +1-212-850-5600, for LaBranche & Co Inc.
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