Unifi Inc. (UFI) News

GREENSBORO, N.C., March 2 /PRNewswire-FirstCall/ -- (NYSE: UFI) Unifi, Inc. ('Unifi') announced today that it has commenced a cash tender offer for up to $8,776,000 aggregate principal amount of its 11.5% Senior Secured Notes due 2014 (CUSIP No. 904677AG6).

Approximately $190 million in aggregate principal amount of the notes are currently outstanding. Terms and conditions of the tender offer are set forth in an Offer to Purchase for Cash (the 'Offer to Purchase') and related Option of Holder to Elect Purchase (the 'Purchase Notice'), both dated March 2, 2009. This offer is being taken pursuant to Sections 4.10(a) and 4.10(c)(B) of the Indenture dated May 26, 2006 related to the Notes, (the 'Indenture') in order to utilize the Excess Collateral Proceeds (as such term is defined in the Indenture) accumulated by Unifi.

Holders who tender notes by 5 p.m. EDT on March 31, 2009 (the 'Expiration Date'), unless such time is extended, and whose notes are accepted by Unifi, will be entitled to receive $1,000 in cash for each $1,000 principal amount of notes accepted in the tender offer, plus accrued and unpaid interest from the last applicable interest payment date to, but excluding, the date of payment. Unifi will accept validly tendered notes which are not withdrawn, having an aggregate principal amount up to $8,776,000. In the event that the amount of notes validly tendered and not properly withdrawn on or prior to the Expiration Date exceeds the $8,776,000, Unifi will accept for payment from among the tendered notes on a pro rata basis.

A tender of notes pursuant to the tender offer becomes irrevocable by the tendering holder on the Expiration Date. The tender offer is not contingent upon the tender of any minimum principal amount of notes or any other conditions.

This press release does not constitute an offer to buy or the solicitation of an offer to sell any of the notes as described. The tender offer is being made only pursuant to the Offer to Purchase and related Purchase Notice. None of Unifi, its management or board of directors, the trustee or their respective affiliates makes any recommendation to any holder of notes as to whether to tender or refrain from tendering notes, and no one has been authorized by Unifi to make such recommendation.

The trustee, U.S. National Bank Association, will serve as the depositary.

Requests for documents and questions regarding the tender offer may be directed to U.S. National Bank Association by telephone at (800) 934-6802.

Unifi, Inc. (NYSE: UFI) is a diversified producer and processor of multi-filament polyester and nylon textured yarns and related raw materials. The Company adds value to the supply chain and enhances consumer demand for its products through the development and introduction of branded yarns that provide unique performance, comfort and aesthetic advantages. Key Unifi brands include, but are not limited to: AIO(R) - all-in-one performance yarns, SORBTEK(R), A.M.Y.(R), MYNX(R) UV, REPREVE(R), REFLEXX(R), MICROVISTA(R) and SATURA(R). Unifi's yarns and brands are readily found in home furnishings, apparel, legwear, and sewing thread, as well as industrial, automotive, military, and medical applications. For more information about Unifi, visit www.unifi.com, or to learn more about REPREVE(R), visit www.repreve.com.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

Certain statements included herein contain forward-looking statements within the meaning of federal security laws about Unifi. Words such as 'expects,' 'anticipates,' 'believes,' 'estimates,' variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof. Unifi undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise.

Factors that may cause actual outcome and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to those factors set forth in Unifi's Annual Report on Form 10-K for the year ended June 29, 2008, under the caption 'Item 1A. Risk Factors,' and include the continued availability of financial resources through financing arrangements and operations, general domestic and international economic and industry conditions in the markets where Unifi competes, changes in currency exchange rates, interest and inflation rates, recession and other economic and political factors over which Unifi has no control. Other risks and uncertainties may be described from time to time in Unifi's other reports and filings with the Securities and Exchange Commission.

SOURCE Unifi, Inc.