Interface announces initial settlement of tender offer

08 Jun '09

3 min read

Interface, Inc. announced that it has accepted for payment,and intends to promptly pay,approximately $127.2 million in aggregate principal amount, or approximately 89.7%, of its outstanding 10.375% Senior Notes due 2010 (the "Notes") (CUSIP No. 458665AG1) tendered pursuant to the Company's previously announced offer to purchase any and all of the Notes the "Offer"). The Notes accepted for payment were all tendered by 5:00 P.M., Eastern Time, on May 29, 2009 (the "Early Tender Deadline"). The tender offer is described in the Offer to Purchase and Consent Solicitation Statement dated May 14, 2009 (the "Offer to Purchase").

Pursuant to the Offer to Purchase, the total consideration for the Notes accepted for payment today is $1,045 per $1,000 principal amount of Notes, which includes the early tender payment of $30 per $1,000 principal amount of Notes.

The Offer is scheduled to expire at 11:59 P.M., Eastern Time, on June 11, 2009, unless extended or earlier terminated. Holders tendering Notes by the expiration of the Offer are entitled to receive the offer consideration of $1,015 per $1,000 principal amount of Notes. As previously announced, as a result of the execution of the supplemental indenture effecting the proposed amendments to the indenture governing the Notes, tendered Notes and consents may no longer be withdrawn or revoked, except in the limited circumstances described in the Offer to Purchase.

The Company intends to finance the payment for Notes tendered pursuant to the tender offer primarily with the net proceeds from its private offering of $150 million in aggregate principal amount of its 11.375% Senior Secured Notes due 2013, which closed today.

The complete terms and conditions of the tender offer are described in the Offer to Purchase, copies of which may be obtained by contacting Global Bondholder Services Corporation as Information Agent at (866) 924-2200 (U.S. toll-free) or (212) 430-3774. The Company has engaged Banc of America Securities LLC, Citigroup Global Markets Inc. and Wachovia Securities to serve as Dealer Managers for the tender offer. Questions regarding the tender offer and consent solicitation may be directed to Banc of America Securities LLC at (888) 292-0070 (U.S. toll-free) or (980) 388-9217, Citigroup Global Markets Inc. at (800) 558-3745 (U.S. toll-free) or (212) 723-6106 or Wachovia Securities at (866) 309-6316 (U.S. toll-free) or (704) 715-8341.

None of the Company, the Dealer Managers or the Information Agent make any recommendations as to whether holders should tender their Notes pursuant to the Offer or consent to the proposed indenture amendments, and no one has been authorized by any of them to make such recommendations. Holders must make their own decisions as to whether to tender Notes and deliver consents, and, if so, the principal amount of Notes to tender.

This press release does not constitute an offer to purchase, a solicitation of an offer to sell nor a solicitation of consents with respect to, any Notes or other securities, nor shall there be any purchase of Notes in any state or jurisdiction in which such offer, solicitation or purchase would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The tender offer and consent solicitation is being made solely by the Offer to Purchase.

Interface, Inc. is the world's largest manufacturer of modular carpet, which it markets under the InterfaceFLOR, FLOR, Heuga and Bentley Prince Street brands, and, through its Bentley Prince Street brand, enjoys a leading position in the designer quality segment of the broadloom carpet market. The Company is committed to the goal of sustainability and doing business in ways that minimize the impact on the environment while enhancing shareholder value.

Interface Inc

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