AUBURN HILLS, Mich., Oct. 17 /PRNewswire-FirstCall/ -- Champion
Enterprises, Inc. (the "Company") (NYSE: CHB) announced today the pricing
terms of the previously announced tender offer and consent solicitation (the
"Offer") by its subsidiary, Champion Home Builders Co. ("Champion Home
Builders") for Champion Home Builders' 11 1/4% Senior Notes due 2007 (CUSIP
No. 158501AB2) (the "Notes").
The total consideration for each $1,000 principal amount of Notes validly
tendered and not revoked prior to 5:00 p.m., New York City time, on
October 14, 2005 (the "Consent Date") is $1,090.12, which includes a consent
payment of $20 (the "Consent Payment"). The total consideration was
determined by reference to a fixed spread of 50 basis points over the bid-side
yield of the 3.625% U.S. Treasury Note due April 30, 2007, which was
calculated at 10:00 a.m., New York City time, on October 17, 2005. The
reference yield and the tender offer yield are 4.264% and 4.764%,
respectively. Holders of Notes tendered on or prior to the Consent Date will
also receive accrued and unpaid interest on the Notes, if any, from the last
interest payment date up to, but not including, the payment date for the Offer
(the "Payment Date"), which is expected to be on or about October 31, 2005.
Holders tendering their Notes after the Consent Date, but on or prior to
12:00 midnight, New York City time, on October 28, 2005, unless extended or
earlier terminated, will receive the tender offer consideration of $1,070.12
per $1,000 principal amount of Notes tendered, but will not receive the
Consent Payment. In addition, holders of Notes tendered after the Consent
Date will receive accrued and unpaid interest on the Notes, 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.
The Company also announced today that a majority of holders in principal
amount of the Notes have provided the requisite consents to amend the
indenture governing the Notes. As of the Consent Date, Champion Home Builders
had received tenders and consents for $82,430,000 in aggregate principal
amount of Notes, representing approximately 93.21% of the outstanding Notes.
Holders may no longer withdraw Notes previously or hereafter tendered,
except as described in the Offer to Purchase and Consent Solicitation
Statement, dated September 30, 2005.
The Offer is subject to the satisfaction of certain conditions, including
Champion Home Builders' entry into new credit facilities, a requisite consent
condition, minimum tender condition and other general conditions.
The detailed terms and conditions of the Offer are contained in the Offer
to Purchase and Consent Solicitation Statement. 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 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, Inc.
 back to top
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
|
