AUBURN HILLS, Mich., Sept. 28 /PRNewswire-FirstCall/ -- Champion
Enterprises, Inc. (the "Company") (NYSE: CHB) announced today that its
subsidiary, Champion Home Builders Co. ("Champion Home Builders") intends to
enter into new senior secured credit facilities in an aggregate principal
amount of up to $200 million. The Company plans to use the proceeds of the
new credit facilities to refinance existing senior bank debt, to finance a
tender offer for Champion Home Builders' 11 1/4% Senior Notes due 2007 and to
provide working capital. It is anticipated that the refinancing will close in
late October.
The Company indicated that on September 30, 2005, Champion Home Builders
intends to commence a cash tender offer for all $88,430,000 principal amount
of its outstanding 11 1/4% Senior Notes due 2007 (CUSIP No. 158501AB2) (the
"Notes").
Champion Home Builders is offering to purchase the Notes at a price per
$1,000 principal amount based on the sum of (1) the present value of the
scheduled payment of principal on the Notes on their maturity date, which is
April 15, 2007, and (2) the present value of the scheduled interest payments
through April 15, 2007. The present value will be calculated using a discount
rate equal to a fixed spread of 50 basis points over the yield of the 3.625%
U.S. Treasury Note due April 30, 2007.
In connection with the tender offer, Champion Home Builders is soliciting
consents to proposed amendments to the indenture governing the Notes, which
would eliminate substantially all of the restrictive covenants and certain
events of default. Holders who tender on or prior to the consent date will
receive the total consideration described above, which includes a $20.00
consent payment per $1,000 principal amount of Notes. Holders who tender
after the consent date will receive the total consideration minus the $20.00
consent payment. The consent date is 5:00 p.m., New York City time, on
October 14, 2005. In addition, Holders who validly tender and do not validly
withdraw their Notes in the Offer will also be paid accrued and unpaid
interest, if any, from the last interest payment date up to, but not
including, the payment date.
The tender offer is scheduled to expire at 12:00 midnight, New York City
time, on October 28, 2005, unless extended or earlier terminated. However, no
consent payments will be made in respect of Notes tendered after the consent
date.
The tender offer and consent solicitation are subject to the satisfaction
of certain conditions, including Champion Home Builders' entry into the new
credit facilities, a requisite consent condition, a minimum tender condition
and other general conditions.
The detailed terms and conditions of the tender offer and consent
solicitation will be contained in an Offer to Purchase and Consent
Solicitation Statement that will be available following commencement of the
tender offer. At that time, requests for documents may be directed to The
Altman Group, Inc, the information agent for the offer, at (201) 806-7300
(collect) or (866) 416-0554 (U.S. toll-free). Additional information
concerning the tender offer and consent solicitation may be obtained by
contacting Credit Suisse First Boston, the dealer manager and solicitation
agent for the offer, at (212) 325-7596 (collect) or (800) 820-1653 (U.S. toll-
free).
About Champion
Champion Enterprises, headquartered in Auburn Hills, Mich., a leading
manufacturer of factory-built housing, has produced more than 1.6 million
homes since 1953. Today, Champion operates 32 homebuilding manufacturing
facilities in North America and partners with nearly 3,000 independent
retailers, builders and developers. For more information, please visit
http://www.championhomes.net .
Forward Looking Statements
This news release contains certain statements, which could be construed to
be forward looking statements within the meaning of the Securities and
Exchange Act of 1934. These statements reflect the Company's views with
respect to future plans, events and financial performance. The Company does
not undertake any obligation to update the information contained herein, which
speaks only as of the date of this press release. The Company has identified
certain risk factors which could cause actual results and plans to differ
substantially from those included in the forward looking statements. These
factors are discussed in the Company's most recently filed Form 10-K and other
SEC filings, in each case under the section entitled "Forward Looking
Statements," and those discussions regarding risk factors are incorporated
herein by reference.
SOURCE Champion Enterprises
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Related links:
http://www.championhomes.net
Company News On-Call:
http://www.prnewswire.com/comp/110861.html
CONTACT:
Lisa D. Lettieri, Vice President of Investor
Relations, +1-248-340-7731, llettieri@championhomes.net , or
Phyllis A. Knight, Executive Vice President and CFO,
+1-248-340-9090, both of Champion Enterprises
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