AUBURN HILLS, Mich., Nov. 9 /PRNewswire-FirstCall/ -- Champion
Enterprises, Inc. (NYSE: CHB), a leader in factory-built construction,
announced today the pricing terms of the previously announced tender offer
and consent solicitation (the "Offer") for the company's outstanding 7 5/8
percent Senior Notes due 2009 (CUSIP No. 158496AB5) (the "notes").
The total consideration for the notes was calculated as of 10:00 a.m.,
New York City time, on Nov. 9, 2007 by reference to a fixed spread of 50
basis points over the yield on the 3.875 percent U.S. Treasury note due May
15, 2009 (the "Reference Treasury Security"). The reference yield to
maturity on the Reference Treasury Security, as of 10:00 a.m., New York
City time, on Nov. 9, 2007 was 3.477 percent.
The company will pay the total consideration to holders of the notes
who validly tendered their notes and delivered their consents prior to 5:00
p.m., New York City time, on Nov. 9, 2007 (the "Consent Payment Deadline"),
and whose notes are accepted for purchase by the company, on Nov. 13, 2007
(the "Initial Payment Date"). The total consideration per $1,000 principal
amount of the notes that were validly tendered prior to the Consent Payment
Deadline will be $1,052.80, which includes a consent payment of $30 (the
"Consent Payment"). Holders of such notes validly tendered and accepted for
payment will also receive accrued and unpaid interest on such notes from
the last interest payment date to, but not including, the Initial Payment
Date.
At the final payment date, which is expected to be on or about Nov. 28,
2007 (the "Final Payment Date"), holders tendering their notes after the
Consent Payment Deadline, but prior to 12:00 midnight, New York City time,
on Nov. 27, 2007, unless extended, whose notes are accepted for purchase by
the company, will receive the tender offer consideration of $1,022.80, but
will not receive the Consent Payment. Holders of such notes tendered after
the Consent Payment Deadline will also receive accrued and unpaid interest
on such notes from the last interest payment date to, but not including,
the Final Payment Date.
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 Payment Deadline, the
company had received tenders and consents for $74,843,000 in aggregate
principal amount of the notes, representing approximately 90.94 percent of
the outstanding notes.
Holders may no longer withdraw the notes previously or hereafter
tendered, except as described in the Offer to Purchase and Consent
Solicitation Statement, dated Oct. 29, 2007.
The Offer is subject to the satisfaction of certain conditions,
including the financing condition, the minimum tender condition, the
supplemental condition and other general conditions, as described in the
Offer to Purchase and Consent Solicitation Statement, dated Oct. 29, 2007.
The detailed terms and conditions of the Offer are contained in the
Offer to Purchase and Consent Solicitation Statement. Questions about the
tender offer and consent solicitation may be directed to Credit Suisse at
(212) 325- 4951 (collect). Holders can request documents from D.F. King &
Co., Inc., the information agent and tender agent, at (888) 644-5854 (U.S.
toll free) or (212) 269-5550 (collect).
About Champion
Auburn Hills, Michigan-based Champion Enterprises, Inc., a leader in
factory-built construction, operates 32 manufacturing facilities in North
America and the United Kingdom working with independent retailers, builders
and developers. The Champion family of builders produces manufactured and
modular homes, as well as modular buildings for government and commercial
applications.
Forward-Looking Statements
This news release contains, in addition to historical information,
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are based
on the company's current assumptions, expectations and projections about
future events. Words like "believe," "anticipate," "intend," "estimate,"
"expect," "project" and similar expressions are used to identify
forward-looking statements, although not all forward-looking statements
contain these words. These forward-looking statements are necessarily
estimates reflecting the best judgment of the company's senior management
and involve a number of risks and uncertainties that could cause actual
results to differ materially from those suggested by the forward-looking
statements.
Investors should consider the information contained in the company's
filings with the SEC, including its Annual Report on Form 10-K for the 2006
fiscal year, especially in the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and "Risk Factors" sections,
its most recent Quarterly Reports on Form 10-Q and its Current Reports on
Form 8-K. Other unknown or unpredictable factors also could have material
adverse effects on the company's future results, performance or
achievements. In light of these risks, uncertainties, assumptions and
factors, the forward-looking events discussed in this news release may not
occur. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date stated, or if
no date is stated, as of the date of this news release.
The company is not under any obligation and does not intend to make
publicly available any update or other revisions to any of the
forward-looking statements contained in this news release to reflect
circumstances existing after the date of this news release or to reflect
the occurrence of future events even if experience or future events make it
clear that any expected results expressed or implied by those
forward-looking statements will not be realized.
SOURCE Champion Enterprises, Inc.
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Related links:
http://www.championhomes.com/
http://www.prnewswire.com/comp/110861.html/
CONTACT:
Laurie Van Raemdonck, Vice President,
Investor Relations, +1- 248-340-7731, or
lvanraemdonck@championhomes.net, or Phyllis Knight, Executive
Vice President and CFO, +1-248-340-9090, both of Champion
Enterprises, Inc.
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