CP Atlas Buyer, Inc. Reveals Early Exchange Results for Senior Notes Due 2028

CP Atlas Buyer, Inc. Announces Early Exchange Results

CP Atlas Buyer, Inc., the parent company of American Bath Group (ABG), known for its high-quality bathtubs and shower products, has recently revealed significant early results from its exchange offer for the 7.000% Senior Notes maturing in 2028. This announcement marks an important development in the company’s financial strategy.

Overview of the Exchange Offer

The exchange offer, designed for the outstanding Senior Notes, has garnered considerable interest. As of 5 PM on July 9, 2025, approximately 93.60% of these notes were tendered by Eligible Holders. This level of participation indicates strong investor confidence in the future direction of the company.

Eligible Holders exchanged their old notes for newly issued Second Lien PIK Toggle Notes due in 2031. The interest rate for these new exchange notes is set at an attractive 12.750% per annum. This rate reflects careful consideration based on the pricing of new first lien notes issued at the beginning of July 2025.

Response and Participation

A total of $477,339,000 in old notes were validly tendered by the reported deadline. This is a significant figure against the backdrop of an existing principal amount of $510,000,000 for these Senior Notes. To further validate this exchange, the company also received the requisite consents necessary to amend restrictive covenants associated with the old notes.

The amendments aim to reduce certain provisions that could have hindered the operational flexibility of CP Atlas Buyer and its subsidiaries. Following the receipt of consents, a supplemental indenture was executed with the trustee of the Old Notes to implement these changes.

Timeline and Conditions

The exchange offer and consent solicitation remain open until 5 PM on July 24, 2025. Eligible Holders who tendered their notes after the early exchange period will be eligible for a late exchange consideration. It should be noted that the terms are contingent upon the company meeting several conditions outlined in the Exchange Offering Memorandum.

This strategic move not only supports CP Atlas Buyer’s financial architecture but also signals a commitment to enhancing shareholder value and optimizing debt structure capabilities. Current and potential investors are encouraged to review the Exchange Offering Memorandum carefully before making any financial decisions.

The Company Behind the Notes

American Bath Group stands as a significant manufacturer in the bathware market, offering a range of products from showers to bathtubs. Their reputation for quality and innovation positions them as a leader in the home improvement sector. The actions taken during this exchange period could further stabilize and elevate their market standing.

Conclusion

The early exchange results of CP Atlas Buyer, Inc. illustrate robust engagement from investors and a proactive approach to financial management. With a clear direction set forth by the company's leadership, stakeholders can anticipate continued momentum and growth in the company’s future operations. Investors are advised to stay informed through official channels as developments unfold regarding the exchange offer and related amendments.