Victra's Recent Tender Offer for Senior Secured Notes Explained
Victra Announces Expiration and Results of Its Cash Tender Offer
Victra, recognized as the largest Verizon authorized retailer in the U.S., has recently concluded its cash tender offer for outstanding 7.750% Senior Secured Notes due 2026. This initiative was led by Victra Holdings, LLC and its financing branch, Victra Finance Corp. The tender offer was designed to allow holders of these notes to sell them back to the issuer.
Tender Offer Details
The tender offer, which set its expiration at 5:00 p.m. Eastern Time, garnered significant attention from the financial community, with $493,377,000 of the $727,833,000 in notes validly tendered. This data reflects an impressive participation rate of 67.79%, showing strong interest from noteholders. Notably, the amount tendered excludes $1,697,000 that were involved in guaranteed delivery procedures.
Consideration for Tendered Notes
Each holder who tendered $1,000 principal amount of the notes accepted in the tender offer will receive $1,008.75 in cash, plus accrued and unpaid interest to the Settlement Date. This payment reflects Victra's commitment to providing competitive returns to the investors who chose to participate in the offer.
Important Dates and Conditions
Holders can expect settlement of the tendered notes on an anticipated Settlement Date, which is projected for September 18, 2024. The successful completion of the tender offer is contingent upon fulfilling various conditions highlighted in the Offers to Purchase documentation, including financial stipulations.
Future of Non-Tendered Notes
Following the conclusion of this cash tender offer, all purchased notes will be cancelled. Victra intends to take further action concerning outstanding notes that were not tendered. Specifically, these Non-Tendered Notes will be redeemed on February 15, 2025, at a redemption price equaling 100% of their principal amount plus any accrued interest.
Role of Financial Institutions in the Tender Offer
BofA Securities and Truist Securities, Inc. played pivotal roles as dealer managers in this tender offer process. Their involvement ensured a smooth transition for holders looking to tender their notes. Questions regarding the tender offer were directed to these managers, showcasing the coordination involved in successfully executing such financial transactions.
About Victra
Victra operates as Walgreens' agent for Verizon Wireless, providing customers with a wide variety of wireless devices. With around 1,450 stores across nearly all states, it offers an extensive range of products including smartphones, tablets, and mobile broadband solutions. As a trusted retail outlet, Victra continues to enhance the experience of Verizon customers through personalized service and quality products.
Frequently Asked Questions
What is Victra's recent cash tender offer about?
Victra's cash tender offer involved the purchase of its outstanding 7.750% Senior Secured Notes due 2026, aimed at providing liquidity to noteholders.
How much of the notes were tendered?
Approximately $493,377,000 of the $727,833,000 in notes were validly tendered during the offer, representing about 67.79% of the total outstanding principal.
What will happen to the non-tendered notes?
Non-tendered notes are expected to be redeemed on February 15, 2025, at their redemption price, which will be 100% of the principal amount plus accrued interest.
When can tendering holders expect settlement?
The settlement date for validly tendered notes is anticipated to occur on September 18, 2024.
Who managed the tender offer?
BofA Securities and Truist Securities, Inc. acted as dealer managers for the tender offer, ensuring effective communication and execution of the offer.
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