Exciting Exchange Offers from Park River Holdings, Inc.

Park River Holdings, Inc. Announces Exchange Offers

Park River Holdings, Inc. (the "Company"), the parent company of PrimeSource Brands, has recently initiated offers that give an exceptional opportunity for holders of the Company's outstanding 5.625% Senior Notes due 2029 and 6.750% Senior Notes due 2029. The offers, referred to as the "Exchange Offers," facilitate a chance for eligible holders to exchange their existing notes for newly issued 8.75% Second Lien Secured Notes due 2030, along with cash payments. This strategic move aims to enhance the financing structure of the Company while offering a better yield to noteholders.

Details of the Exchange Offers

The Exchange Offers encompass any and all of the 5.625% and 6.750% Notes that are held by eligible investors. The new notes will carry an attractive interest rate of 8.75% per annum, payable semi-annually in cash, providing a compelling reason for noteholders to participate. The guarantors for these Exchange Notes include the Company’s existing and future wholly-owned domestic subsidiaries, ensuring solid backing and confidence in the investment.

Incentives for Eligible Holders

In addition to the attractive yields from the Exchange Notes, the Company is soliciting consents from eligible holders to make amendments that will simplify the indentures governing the outstanding notes. These amendments include eliminating restrictive covenants and certain default provisions, as well as modifying other terms to create a more flexible agreement for noteholders.

Concurrent Financing Strategy

Alongside the Exchange Offers, the Company plans to secure new first lien financing, which consists of an amended first lien credit facility and new first lien notes. This strategy is expected to improve the Company’s liquidity position significantly, allowing it to fulfill current debts while also facilitating the early exchange offer options to eligible holders.

Conditions for Acceptance

Accepting Old Notes for exchange is conditional upon certain predefined thresholds being met. The Company aims for over 50% of each series of Old Notes to be validly tendered, ensuring adequate participation to achieve the financing goals. They maintain flexibility by allowing waiver of certain conditions without extending the deadlines for the exchange.

Important Timeline and Participation Details

The Exchange Offers will close at specified New York City time on the set expiration date. Eligible holders should be aware that all tendering must be executed within the outlined timeline to ensure participation. No partial tenders will be accepted, emphasizing the need for comprehensive engagement from eligible investors.

Understanding the Exchange Consideration

Holders of 5.625% and 6.750% Notes can expect to receive notable early exchange considerations if they tender their notes before the early exchange deadline. This includes a combination of exchange notes and cash, making the offer quite appealing.

Implications for Future Operations

This strategic move to reform the capital structure is designed to bolster the Company's operational capabilities directly. With more accessible capital and improved terms for noteholders, Park River Holdings, Inc. can continue to invest in its business operations and enhance its competitive edge in the market.

Company Overview

Park River Holdings, Inc. is recognized as a prominent national provider of specialty branded building products. Their wide range of products, spanning over 95,000 SKUs, is essential for various construction needs, serving a significant customer base. The Company's impactful logistics and robust brand presence in the industry allow it to fulfill the diverse requirements of over 50,000 customer locations across multiple regions.

Frequently Asked Questions

What are the Exchange Offers?

The Exchange Offers are opportunities for eligible holders of the 5.625% and 6.750% Senior Notes to exchange their existing notes for newly issued 8.75% Second Lien Secured Notes and cash.

Who is eligible to participate in the Exchange Offers?

Only Eligible Holders of the Old Notes who comply with the requirements presented in the Exchange Offering Memorandum are permitted to participate in the Exchange Offers and Consent Solicitations.

What are the terms of the new Exchange Notes?

The new Exchange Notes will bear an interest rate of 8.75% per annum and will be payable in cash semi-annually, making them a highly attractive investment option.

When do the Exchange Offers expire?

The Exchange Offers are set to close on a specified date, with exact timing provided in the Exchange Offering Memorandum. It’s important to act before this deadline.

Can partial exchanges of notes be made?

No, the Company will only accept full tenders of Old Notes; partial tenders are not allowed in this exchange process.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

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