BroderBros. Co. Announces Results for Private Exchange Offer and Anticipated Settlement Date
On the settlement date, the mutual release, under which the parties thereto, including the holders tendering their existing notes, the company and the existing stockholders of the company, have agreed to release the other parties to the mutual release and their related parties from all claims that the parties and their related parties have, had or may have directly or indirectly related to the company, subject to limited exceptions set forth in the release, will become effective and the supplemental indenture (the “supplemental indenture”) amending the indenture governing the existing notes (the “existing indenture”) to waive any and all existing defaults and events of default that have arisen or may arise under the existing notes, eliminate substantially all of the covenants in the existing indenture that govern the company's actions, other than the covenants to pay principal of and interest on the existing notes when due, and eliminate or modify the related events of default, will become operative. The company intends to pay the overdue April 15, 2009 interest payment to holders of existing notes that were not tendered in the exchange offer. BroderBros. Co. believes that following such payment and the effectiveness of the supplemental indenture, all existing defaults under such existing notes will be cured or waived as of settlement date.
The exchange offer and mutual release and consent solicitation was made upon the terms and subject to the conditions set forth in the Offering Memorandum and Mutual Release and Consent Solicitation Statement, dated April 17, 2009, as supplemented by Supplement No. 1, dated April 28, 2009, and the company’s press releases dated May 1, 2009; May 6, 2009; and May 11, 2009 (the "offering memorandum") and the accompanying letter of transmittal, mutual release and consent (the "letter of transmittal" and, together with the Offering Memorandum, the "offering documents")
previously distributed to eligible holders. D.F. King & Co. Inc. is serving as exchange agent and information agent for the exchange offer and may be contacted at (800) 859-8508 or (212) 269-5550.