Arcadia Financial Ltd. Achieves Requisite Consents in Tender Offer and Consent Solicitation for 11 1/2% Senior Notes Due 2007.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--May 23, 2000 Arcadia Financial Ltd. ("Arcadia"), an indirect wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Associates First Capital Corporation (NYSE NYSE See: New York Stock Exchange :AFS A distributed file system for large, widely dispersed Unix and Windows networks from Transarc Corporation, now part of IBM. It is noted for its ease of administration and expandability and stems from Carnegie-Mellon's Andrew File System. AFS - Andrew File System ), today announced, in connection with its previously announced tender offer and consent solicitation Consent Solicitation A solicitation by one party to the stakeholders of a particular security for the consent of a material change. Notes: Should the majority of stakeholders provide valid consent prior to the consent expiry date, the issuer may then follow through with for both tranches of its 11 1/2% Senior Notes Due 2007 (the "Notes"), that as of 5:00 p.m., New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. time, on May 22, 2000, it has received sufficient duly executed and unrevoked consents from holders of the Notes to execute the proposed amendments to the indenture under which the Notes were issued. Under the terms of the offer, Arcadia will purchase the outstanding Notes at a purchase price determined by reference to a fixed spread of 50 basis points over the yield to maturity of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Treasury 6 1/2% Note due March 31, 2002, plus accrued and unpaid interest to but excluding the date of payment. The purchase price includes a consent payment in an amount equal to 2% of the principal amount. Arcadia and the trustee for the Notes have executed a supplemental indenture incorporating the proposed amendments to the indenture, as described in the offer. However, the amendments will not become operative unless and until validly tendered Notes are purchased pursuant to the offer. If the offer is consummated and the amendments become effective, the amendments will be binding on all non-tendering holders of Notes. The offer will expire at 5:00 p.m., New York City time, on June 6, 2000, unless extended. Payment for tendered Notes will be made in same day funds on the first business day following expiration of the offer, or as soon thereafter as practicable. The Depositary for the Tender Offer is Norwest Bank Minnesota, National Association. |
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