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Buckeye Technologies Inc.
Memphis, Tennessee, USA, 01 July 2009 -- (BUSINESS WIRE) --- Buckeye Technologies Inc. (NYSE:BKI) has successfully completed its consent solicitation to amend the indenture governing its 8½% Senior Notes due 01October 2013, to permit the redemption, repurchase, or retirement of subordinated indebtedness, including the company’s 8% Senior Subordinated Notes due 2010, up to 16 months before maturity, which represents an increase of four months compared to the original indenture.

Approximately 92% of holders of the 2013 Notes consented to the amendment. Each consenting holder will receive a consent fee equal to USD 3.54 for each USD 1000 principal amount of the 2013 Notes for which consents were validly delivered and not revoked. The consent solicitation expired at 5:00 p.m., Eastern Time, on 30 June 2009.

Buckeye also announced that it has called for redemption before their maturity USD 110 million in aggregate principal amount of the 2010 Notes and will redeem on 31 July 2009, in accordance with their terms. Upon completion of the redemption, none of the 2010 Notes will remain outstanding. A formal notice of redemption has been sent separately to the affected holders of the 2010 Notes, in accordance with the terms of the indenture governing the 2010 Notes. Buckeye plans to finance this redemption using drawings from its revolving credit facility and cash on hand. As of 30 June 2009, there was approximately USD 178 million of availability on its revolving credit facility and a cash balance of approximately USD 20 million.

Buckeye, a leading manufacturer and marketer of specialty fibers and nonwoven materials, is headquartered in Memphis, Tennessee, USA. The company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods.


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