School Specialty Announces Exchange Transaction to Retire 3.75% Convertible Subordinated Debentures Due 2026

School Specialty SCHS has entered into separate, privately negotiated exchange agreements under which it will retire $57.5 million in aggregate principal amount of its outstanding 3.75% Convertible Subordinated Debentures due 2026 in exchange for its issuance of a new series of 3.75% Convertible Subordinated Debentures due 2026 created under a March 1, 2011 indenture in an aggregate original principal amount of $57.5 million. This issuance of the 2011 Debentures is the second following the March 2011 issuance of 2011 Debentures in an aggregate original principal amount of $100 million. Following these transactions, there will be a total of $42.5 million in aggregate principal amount of 2006 Debentures outstanding. On July 1, 2011, School Specialty entered into the Second Amendment to its Credit Agreement dated as of April 23, 2010. The Amendment is conditioned on the exchange of at least $50 million in aggregate principal amount of outstanding 2006 Debentures for 2011 Debentures, and the delay draw term commitments will be permanently reduced by the amount of the 2006 Debentures so exchanged.