Copies of the report, The Feasibility and Desirability of Mandatory Subordinated
Debt, are available on the web sites of the Board, www.
This means owners applying for subordinated loans can expect due diligence to ensure cash flow and earning targets will be met.
It also means subordinated debt is more expensive than conventional financing.
This classification recognizes their junior subordinated
ranking, the maturity of the underlying instruments in excess of 20 years, and the deferral feature of more than five years.
75% senior subordinated
notes due March 2013 (callable in 2009); and 3) $600 million of 8.
This announcement is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consents with respect to the Senior Subordinated
The ratings of the remaining subordinated debt, however, will be lowered due to the lower likelihood of recovery as senior secured debt increases.
75% subordinated convertible notes ('RR1' expected due to cash collateral), the recovery ratings benefit from the value of GY's lands with the senior secured credit facility and the senior subordinated debt expected to see 100% recovery ('RR1').
The Senior Subordinated
Notes proposed to be issued in the private placement will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.
47 million in principal amount of the Subordinated
Notes will remain outstanding.
The total exchange price for each $1,000 principal amount of 9-3/8% Subordinated
Notes tendered, using a yield of 5.
SAN ANTONIO -- Tesoro Corporation ("Tesoro") (NYSE:TSO) announced today the expiration of its previously announced cash tender offers and consent solicitations for its $211 million principal amount outstanding of 9 5/8% Senior Subordinated
Notes due 2008 (the "2008 Subordinated
Notes"), $429 million principal amount outstanding of 9 5/8% Senior Subordinated
Notes due 2012 (the "2012 Subordinated
Notes") and $375 million principal amount outstanding of 8% Senior Secured Notes due 2008 (the "2008 Secured Notes").
Tesoro currently intends to optionally redeem on December 16, 2005, in accordance with the terms of the indenture governing the 2008 Subordinated
Notes, all 2008 Subordinated
Notes that remain outstanding at that time, at the applicable redemption price of 104.