Business news : Jarden Places $250 Million in Convertible Notes

Jarden Corporation sold $250 million in aggregate principal amount of senior subordinated convertible notes due 2019 in a private offering to a syndicate of investors headed by Barclays Capital Inc. and J.P. Morgan LLC. The investors also exercised their option to purchase an additional $15.2 million in aggregate principal amount of the convertible notes.

The convertible notes will pay interest semiannually at a rate of 1.50 percent per annum. Upon conversion, holders will receive, at the company's discretion, cash, shares of the company's common stock or a combination thereof. The conversion rate will be 17.1054 shares of the company's common stock (subject to customary adjustments) per $1,000 principal amount of the convertible notes, which is equivalent to a conversion price of approximately $58.46 per share, which represents a conversion premium of approximately 30 percent to the closing sale price of $44.97 per share of the company's common stock on June 6, 2013.
 

The net proceeds from the sale of the convertible notes, including proceeds resulting from the exercise of the initial purchasers' option to purchase an additional $15.2 million in principal amount of the convertible notes, are approximately $258 million, after deducting estimated fees and expenses.
Jarden intends to use the net proceeds for general corporate purposes. Jarden’s Outdoor Solutions segment owns the Abu Garcia, Aero, Berkley, Campingaz and Coleman, ExOfficio, Fenwick, Gulp!, Invicta, K2, Marker, Marmot, Mitchell, Penn, Rawlings, Shakespeare, Stearns, Stren, Trilene, Völkl and Zoot brands. 

 

Source Jarden through SportsOneSource