Central Garden & Pet Company (NASDAQ: CENT)(NASDAQ: CENTA) today
announced that it has commenced a cash tender offer (the "Tender Offer”)
to purchase any and all of its outstanding $150,000,000 million
aggregate principal amount of 9 1/8% Senior Subordinated Notes due 2013
(the "Notes”). In conjunction with the Tender Offer, Central is also
soliciting consents (the "Consent Solicitation” and together with the
Tender Offer, the "Offer”) to adopt certain proposed amendments to the
indenture under which the Notes were issued (the "Indenture”) that would
eliminate substantially all of the restrictive covenants and certain
event of default provisions and modify certain other provisions. The
Offer is being made upon the terms and subject to the conditions set
forth in the Offer to Purchase and Consent Solicitation Statement dated
February 22, 2010. The Offer is scheduled to expire at midnight, New
York City time, on March 19, 2010, unless extended or earlier terminated
(the "Expiration Date”).
Holders who validly tender their Notes and provide their consents to the
proposed amendments to the Indenture prior to the consent deadline of
5:00 p.m., New York City time, on March 5, 2010, unless extended (the
"Consent Deadline”), will receive the total consideration equal to
$1,015.21 per $1,000 principal amount of the Notes, which includes a
consent payment of $15.21 per $1,000 principal amount of the Notes, plus
accrued and unpaid interest on the Notes up to, but not including, the
payment date for such Notes. The Offer contemplates an early settlement
option, so that holders whose Notes are validly tendered prior to the
Consent Deadline and accepted for purchase could receive payment as
early as March 8, 2010.
Holders who validly tender their Notes after the Consent Deadline but on
or prior to the Expiration Date will receive the tender offer
consideration equal to $1,000 per $1,000 principal amount of the Notes,
plus any accrued and unpaid interest on the Notes up to, but not
including, the payment date for such Notes. Holders of Notes tendered
after the Consent Deadline will not receive a consent payment.
Holders of Notes who desire to tender their Notes must consent to the
proposed amendments and holders may not deliver consents to the proposed
amendments without tendering their related Notes. A holder of Notes may
not revoke its consent without withdrawing the Notes tendered pursuant
to the Offer. Holders of Notes may withdraw their tenders and revoke
their consents at any time at or prior to the Consent Deadline but,
generally not, thereafter. Following receipt of the consent of the
holders of at least a majority in aggregate principal amount of the
outstanding Notes, Central will execute a supplemental indenture
effecting the proposed amendments.
The Offer is conditioned upon the satisfaction of, or, where applicable,
Central’s waiver of, certain conditions, including (a) the tender of at
least a majority in principal amount of the outstanding Notes at or
prior to the Consent Deadline (thereby obtaining the requisite consents
for the proposed amendments to the Indenture), (b) the execution of the
supplemental indenture implementing the proposed amendments to the
Indenture, (c) the consummation of a financing on terms satisfactory to
Central and resulting in the receipt by Central of proceeds in an amount
sufficient to finance the Offer and the redemption of any Notes, which
are currently callable, that remain outstanding after the expiration of
the Offer, and (d) certain other conditions as described in the Offer to
Purchase and Consent Solicitation Statement. If any of the conditions is
not satisfied, Central will not be obligated to accept for purchase, or
to pay for, Notes tendered (and corresponding consents) and may delay
the acceptance for payment of, any tendered Notes, in each event,
subject to applicable laws, and may terminate, extend or amend the Offer
and may postpone the acceptance for purchase of, and payment for, Notes
so tendered.
The primary purpose of the Consent Solicitation and proposed amendments
is to obtain the required consents to amend the Indenture to eliminate
substantially all of the restrictive covenants contained in the
Indenture and the Notes, eliminate certain events of default, modify
covenants regarding mergers and consolidations, and modify or eliminate
certain other provisions of the Indenture. Central currently intends to
redeem any Notes that remain outstanding after the expiration of the
Offer and to exercise its rights under the Indenture to satisfy and
discharge the Indenture. This press release does not constitute a notice
of redemption under the optional redemption provision of the Indenture.
This press release does not constitute an offer to sell or purchase, or
a solicitation of an offer to sell or purchase, or the solicitation of
tenders or consents with respect to, any security. No offer,
solicitation, purchase or sale will be made in any jurisdiction in which
such an offer, solicitation, or sale would be unlawful. The Offer is
being made solely pursuant to the Offer to Purchase and Consent
Solicitation Statement and related transmittal documents.
Requests for documents may be directed to Georgeson Inc., the
Information Agent, at (888) 877-5418 or (212) 440-9800.
J.P. Morgan Securities Inc. will act as Dealer Manager for the Tender
Offer and Solicitation Agent for the Consent Solicitation. Questions
regarding the Tender Offer and Consent Solicitation may be directed to
J.P. Morgan Securities Inc. at (800) 245-8812.
Central Garden & Pet Company is a leading innovator, marketer and
producer of quality branded products for the lawn & garden and pet
supplies markets. Committed to new product innovation, our products are
sold to specialty independent and mass retailers. Participating
categories in Lawn & Garden include: Grass seed including the brands
PENNINGTON®, SMART SEED™ and THE REBELS™; wild bird feed and the brands
PENNINGTON® and KAYTEE®; weed and insect control and the brands AMDRO®,
SEVIN®, IRONITE® and Over 'N Out®; and decorative outdoor patio products
and the brands NORCAL®, NEW ENGLAND POTTERY® and MATTHEWS FOUR SEASONS™.
We also provide a host of other regional and application-specific garden
brands and supplies. Participating categories in Pet include: Animal
health and the brands ADAMS™ and ZODIAC®; aquatics and reptile and the
brands OCEANIC®, AQUEON® and ZILLA®; bird & small animal and the brands
KAYTEE®, SUPER PET® and CRITTER TRAIL®; dog & cat and the brands TFH™ ,
NYLABONE®, FOUR PAWS®, PINNACLE® and AVODENN®; and equine and the brands
FARNAM®, BRONCO® and SUPER MASK®. We also provide a host of other
application-specific Pet brands and supplies. Central Garden & Pet
Company is based in Walnut Creek, California, and has approximately
4,000 employees, primarily in North America and Europe. For additional
information on Central Garden & Pet Company, including access to
Central's SEC filings, please visit Central's website at www.central.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: The statements contained in this release which are not
historical, including statements relating to the Offer and any financing
related thereto, potential capital efficiency and margin growth and new
growth strategies, are forward-looking statements that are subject to
risks and uncertainties that could cause actual results to differ
materially from those set forth or implied by forward-looking
statements. These risks and uncertainties include, but are not limited
to, the satisfaction of conditions to the Offer, the ability to obtain
financing on terms satisfactory to Central and resulting in the receipt
by Central of proceeds in an amount sufficient finance the Offer, and
those risks and uncertainties described in Central’s Annual Report on
Form 10-K, filed November 20, 2009 and Central’s Quarterly Report on
Form 10-Q, filed February 4, 2010, and other Securities and Exchange
Commission filings. Central undertakes no obligation to publicly update
these forward-looking statements to reflect new information, subsequent
events or otherwise.
