Business news :Jarden Corp. Plans to Issue $450 Million in Debt

Jarden Corporation, which owns Coleman, K2, Marmot, Rawlings and other sporting goods brands, announced that it intends to issue $450 million in debt and use up to $125 million of the proceeds to buy back its own stock.
The debt would be offered, subject to market and other conditions,  as senior subordinated convertible notes due 2018 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act").  The interest rate, initial conversion price, repurchase provisions and other terms of the convertible notes will be determined by negotiations between the company and the initial purchasers.  In connection with this offering, the company expects to grant to the initial purchasers an option to purchase up to an additional $50 million in aggregate principal amount of the convertible notes.

On Sep. 11, the company's board of directors authorized an increase to the company's stock repurchase program to allow for the repurchase of up to $250 million in aggregate of the company's common stock.

The company intends to use up to $125 million of the net proceeds from the sale of the convertible notes to repurchase shares of its common stock under its stock repurchase program through negotiated transactions with investors in the convertible notes offering, subject to availability.  The company intends to use the remaining net proceeds for general corporate purposes.

( SportsOneSource Media )

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