Unifi Inc. continued its capital restructuring by launching a tender offer to buy back all its outstanding 11.5% notes due 2014 with proceeds from a proposed $140 million debt refinancing.


The company, which is a major supplier of recycled polyester fiber used in fleece and other outdoor apparel, is soliciting the consents of holders of the notes to authorize the elimination of most of the restrictive covenants and certain of the events of default contained in the indenture governing the notes and the release of the security for the notes.

 
The company intends to use the proceeds from a $140.0 million debt financing, together with borrowings under the company's existing secured revolving credit facility or available cash, or a combination thereof, to fund the tender. 

 
Note holders who consent to the offer by 5 pm EST on Jan. 11, 2011 will be paid $1,060 per $1,000 of face value of notes validly tendered. Holders validly tendering notes after the deadline but before the tender offer expires at midnight Jan. 26, 2011 will be eligible to receive onl the tend offere consideration of $1,030 per $1,000 principal amount.