Home PC News Colt Defense LLC Announces Tender Offer for 8.00% Fourth Priority Secured Notes...

Colt Defense LLC Announces Tender Offer for 8.00% Fourth Priority Secured Notes Due 2021 and Related Consent Solicitation

WEST HARTFORD, Conn.–(BUSINESS WIRE)–September 10, 2020–

Colt Defense LLC (the “Company”) launched instantly that it has launched a cash tender present to purchase any and all of its wonderful $5,865,680 mixture principal amount of 8.00% Fourth Priority Secured Notes Due 2021 (the “Notes”). In reference to the tender present, the Company might be soliciting consents from holders of the Notes to positive amendments to the indenture governing the Notes (the “Indenture”) to, amongst totally different points, take away significantly your entire restrictive covenants and positive events of default contained therein, launch the collateral securing the Notes and shorten the uncover required to be given to holders of Notes inside the case of a redemption of the Notes.

The Notes and totally different knowledge relative to the Company’s tender present and consent solicitation are set forth inside the desk beneath.

Notes

CUSIP
Number(s)

Aggregate
Principal Amount
Outstanding

Tender Offer
Consideration(1)

Early Tender
Payment(1)

Total
Consideration(1)(2)

8.00% Fourth Priority
Secured Notes due
2021

19687F AA4

$5,865,680

$0.375

$0.025

$0.40

(1)

Per $1.00 principal amount of Notes, excluding accrued and unpaid curiosity thereon, which curiosity will in all probability be forfeited.

(2)

Includes the tender present consideration and the early tender value.

Each holder who validly tenders its Notes and delivers its consent to the proposed amendments prior to 5:00 p.m., New York City time, on September 24, 2020, besides such time is extended by the Company (the “Early Tender Time”), will get hold of, if such Notes are accepted for purchase pursuant to the tender present, the entire consideration of $0.40 per $1.00 principal amount of the Notes tendered, which includes $0.375 as a result of the tender present consideration and $0.025 as an early tender value. Eligible holders of Notes will not be going to be entitled to acquire any cash value with respect to accrued and unpaid curiosity on Notes accepted for purchase and any such accrued curiosity will in all probability be forfeited, as a result of the per $1.00 principal amount ratio with respect to the tender present has been calculated to take account of accrued curiosity via the settlement of the tender present.

The tender present is scheduled to expire at 5:00 p.m., New York City time, on October 8, 2020, besides extended or earlier terminated (the “Expiration Time”). Holders who validly tender their Notes after the Early Tender Time nevertheless on or earlier to the Expiration Time will get hold of the tender present consideration of $0.375 per $1.00 principal amount of the Notes, nevertheless will not be going to acquire the consent value.

In reference to the tender present, the Company is soliciting consents to amend the Indenture to, amongst totally different points, take away significantly your entire restrictive covenants and positive events of default contained therein, launch the collateral securing the Notes and shorten the uncover required to be given to holders of Notes inside the case of a redemption of the Notes.

Tendered Notes may be withdrawn at any time prior to 5:00 pm, New York City time, on September 24, 2020, nevertheless not thereafter, apart from to the extent that the Company are required by regulation to produce additional withdrawal rights (such time, because the equivalent may be extended, the “Withdrawal Deadline”). Subject to the phrases and circumstances described beneath, value of the entire consideration or tender present consideration, as related, is anticipated to occur promptly after the Early Tender Time or the Expiration Time, as related. The Company expects that such value of the entire consideration will in all probability be made on or about September 29, 2020, besides extended by the Company in its sole discretion. The Company expects that the price of the tender present consideration with respect to Notes tendered after the Early Tender Time will in all probability be made on or about October 9, 2020, besides extended by the Company in its sole discretion. In addition, at any time after the Early Tender Time nevertheless earlier to the Expiration Time, and matter to the phrases and circumstances described beneath, the Company might settle for for purchase Notes validly tendered on or earlier to such time and purchase such Notes for the tender present consideration or full consideration, as related, promptly thereafter.

The Company pays a soliciting vendor cost of $0.01 for each $1 principal amount of the Notes that are validly tendered and accepted for purchase pursuant to the tender off to retail brokers that are appropriately designated by their tendering holder customers to acquire this cost.

If any of the circumstances are often not glad, the Company might terminate the tender present and consent solicitation and return tendered Notes. The Company has the right to waive positive circumstances with respect to the tender present. In addition, the Company has the right, in its sole discretion, to terminate the tender present and consent solicitation at any time, matter to related regulation. For additional knowledge regarding the circumstances referenced above, please seek the advice of with the Offer Documents (as outlined beneath).

This announcement shall not symbolize a proposal to purchase or a solicitation of a proposal to advertise any securities. The full phrases and circumstances of the tender present for the Notes are set forth in an Offer to Purchase and Consent Solicitation Statement dated September 10, 2020 and the related Letter of Transmittal (collectively, the “Offer Documents”) that are being despatched to holders of the Notes. The Company’s tender present and consent solicitation are being made solely via, and matter to the phrases and circumstances set forth in, the Offer Documents and related provides.

Ipreo LLC will act as Solicitation Agent and Information Agent for the tender present and consent solicitation for the Notes. Questions regarding the Company’s tender present and consent solicitation or requests for the Offer Documents may be directed to Ipreo LLC at (212) 849-3880 (for banks and brokers) or (888) 593-9546 (for all others).

Neither the Company nor one other explicit individual makes any recommendation as as to if holders of Notes should tender their Notes, and no one has been authorised to make such a recommendation. Holders of Notes ought to make their very personal decisions as as to if to tender their Notes, and within the occasion that they resolve to take motion, the principal amount of the Notes to tender. Holders of the Notes should study rigorously the Offer Documents and related provides sooner than any willpower is made.

About Colt Defense LLC

Colt Defense LLC, a Delaware restricted obligation agency, with predecessors relationship once more to 1836, is among the many world’s oldest designers, builders and producers of firearms for navy, non-public safety and leisure features. The Company’s product strains embody handguns (pistols and revolvers), prolonged weapons & regulated decisions (worldwide navy and regulation enforcement merchandise) and a selection of firearms-related components, teaching, suppliers and mannequin licensing. The Company’s end purchasers embody every part of the firearms market, along with U.S., Canadian and worldwide navy forces, worldwide regulation enforcement and security companies, prospects looking out for non-public security, the looking out and sporting group and collectors.

Cautionary Statement on Forward-Looking Statements

Information on this launch might comprise outlook, expectations, beliefs, plans, intentions, strategies or totally different statements regarding the long term, which are forward-looking statements. These forward-looking statements comprise risks and uncertainties. All forward-looking statements included on this launch are based upon knowledge obtainable to us as of the date of the discharge, and we assume no obligation to exchange any such forward-looking statements. The statements on this launch are often not ensures of future effectivity, and exact outcomes would possibly differ materially from current expectations. Numerous parts would possibly set off or contribute to such variations. Please seek the advice of with “Risk to Non-Tendering Holders; Special Considerations” and “Forward-Looking Statements” inside the Offering Documents for additional knowledge.

Caitlin Kehoe, 860.244.1360

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