Chattem, Inc. Calls Remaining 12 3/4% Notes; Plans to Enter Into New $10 Million Senior Credit Facility.Business Editors CHATTANOOGA, Tenn.--(BUSINESS WIRE)--May 15, 2001 Chattem, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHTT), a leading marketer and manufacturer of branded consumer products, announced today that it has called for repayment of the remaining $21.7 million of its 12 3/4% outstanding notes due June 15, 2004. The call price is 101.6% of par value and the repayment will be completed June 15, 2001. The notes are a part of an original $75 million of senior subordinated notes issued in 1994, of which $54.3 million have been retired through open market purchases or the 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 completed earlier this year. The remaining outstanding notes together with accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. interest thereon there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that will be retired from Chattem's existing cash. Following completion of the 12 3/4% notes repayment, Chattem's remaining outstanding debt will consist of approximately $205 million of 8 7/8% senior subordinated notes due 2008. At the same time, the Company should have cash of approximately $12 million. The Company also announced that it has reached a tentative agreement with Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. for a one-year $10 million senior revolving working capital facility, which Chattem expects to complete on or before the June 15 call date for the 12 3/4% notes. The working capital facility will be used for general corporate purposes. This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, which contains a safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward looking statements. The Company relies on this safe harbor in making such disclosures. The forward looking statements are based on management's current beliefs and assumptions about expectations, estimates, strategies and projections for the Company. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward looking statements. The Company undertakes no obligations to update publicly any forward looking statements whether as a result of new information, future events or otherwise. |
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