Sciens Capital Management Group-backed Colt Defense LLC launched a distressed exchange offer for its debt this week, with an upcoming interest payment on its $250 million in 8.75% senior unsecured notes coming due in mid-May. Under the exchange offer, holders of the senior unsecured notes due Nov. 15, 2017, can swap their securities for 10% junior-priority senior secured notes due Nov. 15, 2023. Every $1,000 of unsecured notes would be exchanged for $300 in new secured notes, plus a $50 consent payment. The exchange offer will expire on May 11 and in order for it to be successful, it must have a 98% participation rate.
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