Broder Bros., Co. announced that it had amended certain of
the terms of its pending private exchange offer for all of its 11.25% senior
notes due 2010 to reduce the minimum tender condition to a minimum of $213.75
million in principal amount of the Existing Notes, or 95% of the outstanding
Existing Notes, and to further extend the consent time to 5:00 p.m., New York
City time, on Friday, May 8, 2009.

 

The ad hoc committee of holders of the Existing Notes has
agreed to this reduction of the minimum tender condition. Holders of Existing
Notes who validly tender their Existing Notes and deliver their consents to
become a party to the mutual release and the proposed amendments to the
indenture governing the Existing Notes on or prior to the consent time as
extended hereby will receive an amount in cash equal to $20.00 per $1,000
principal amount of Existing Notes tendered, of which $10.00 will be paid on
the early settlement date and $10.00 will be paid on October 1, 2009.

 

As of 5:00 p.m., New
York City time, on May 5, 2009, the revised minimum
tender condition of 95% of the outstanding Existing Notes was not satisfied. If
the minimum tender condition is not satisfied or the exchange offer is not
completed for any other reason, the company anticipates that it will, and is
prepared to, initiate a restructuring through the filing of a voluntary
petition under Chapter 11 of the Bankruptcy Code. The company and its
restructuring advisors have prepared the materials necessary to file for
bankruptcy under Chapter 11 of the Bankruptcy Code if the minimum tender
condition is not satisfied. The company believes that an in-court restructuring
will be on terms much less favorable to the holders of the Existing Notes than
the terms of the pending exchange offer. The company estimates that an in-court
restructuring would result in an additional $25 million in fees, expenses and
borrowing costs and that the company would need to seek additional capital to
pay these costs and expenses. This estimate excludes additional liquidity
constraints associated with a reduction in sales and collections, an
acceleration of vendor payments as a result of a contraction of trade terms,
fees associated with a new capital investment and general business degradation,
resulting from an in-court restructuring. The company expects this additional
capital to be on terms that would materially reduce what holders of the
Existing Notes would receive, if anything, in an in-court restructuring on
account of their Existing Notes.


Broder Bros. had said that it if failed to secure the participation of at least 98% of
the Old Notes or does not consummate the Exchange Offer for any reason,
it intends to initiate a restructuring through the filing of a
voluntary petition under Chapter 11 of the U.S. Bankruptcy Code.”

Via its three divisions, Broder Bros.y distributes industry-leading
brands Anvil, Fruit of the Loom, Gildan, Hanes and Jerzees as well as
exclusive retail brands Adidas Golf, Champion and Columbia.