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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