Kerzner Commences Tender Offer
PARADISE ISLAND, The Bahamas -- (PRESS RELEASE) -- Kerzner International Limited (NYSE: KZL), through its subsidiaries a leading international developer and operator of destination resorts, casinos and luxury hotels, and its wholly owned subsidiary, Kerzner International North America, Inc. ("KINA"), announced today that they are commencing a cash tender offer to purchase any and all of their outstanding 6 3/4% Senior Subordinated Notes due 2015. The tender offer is being made pursuant to an Offer to Purchase and Consent Solicitation Statement (the "Statement") and a related Letter of Transmittal and Consent, each dated August 1, 2006. The tender offer is scheduled to expire at 12:01 a.m., New York City time, on August 29, 2006, unless extended to a later date or time or earlier terminated.
In conjunction with the tender offer, the Company and KINA will be soliciting consents to proposed amendments to the indenture governing the notes that would eliminate substantially all of the restrictive covenants and certain events of default and related provisions contained in the indenture governing the notes. Holders that tender their notes will be required to consent to the proposed amendments, and holders that consent to the proposed amendments will be required to tender their notes.
Subject to the terms and conditions set forth in the Statement, the total consideration to be paid for each properly delivered consent and validly tendered (and not withdrawn) note accepted for payment on or prior to 5:00 p.m., New York City time, on August 15, 2006 (the "Consent Date") and accepted for payment will be $1,071.67 per $1,000.00 of principal amount, plus accrued and unpaid interest. The total consideration for each note tendered includes an early consent premium of $20.00 per $1,000.00 of principal amount of notes payable only to those holders that tender their Notes on or prior to 5:00 p.m., New York City time, on the Consent Date. Holders that properly deliver consents and validly tender (and do not withdraw) notes after that time but prior to the expiration of the tender offer will receive $1,051.67 per $1,000.00 of principal amount, plus accrued and unpaid interest. Holders will receive payment promptly after the expiration date for the tender offer, which is currently scheduled to be August 29, 2006.
Tenders of notes and deliveries of consents made on or prior to 5:00 p.m., New York City time, on the Consent Date, may be withdrawn or revoked at any time on or before the Consent Date. Tenders of notes made after 5:00 p.m., New York City time, on the Consent Date, may be withdrawn at any time until 12:01 a.m., New York City time, on the expiration date for the tender offer.
The tender offer is conditioned upon consummation of the acquisition of the Company by an investor group and a minimum tender condition, as well as other general conditions.