Jarden Corp. Closes Convertible Notes Sale

Jarden Corp. borrowed $673 million at just 1.125 percent by closing on a convertible note sale. The company, which owns more than two dozen sporting goods brands including The Coleman Co., Marmot, and Rawlings, said it has the right to convert the notes to cash, its own shares or a combination therefor once its share price reaches $74.86 per share, or a 22.5 percent increase to its closing price March 11.

 

The company said the offering include $600 million in aggregate principal amount of Senior Subordinated convertible notes due 2034 sold in a private offering to qualified institutional investors. 

 

In addition, the company announced that the initial purchasers exercised their option to purchase an additional $90 million in aggregate principal amount of the convertible notes.

The convertible notes will pay interest semiannually at a rate of 1.125 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 13.3583 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 $74.86 per share, which represents a conversion premium of approximately 22.50 percent to the closing sale price of $61.11 per share of the company's common stock on March 11, 2014.

The net proceeds from the sale are approximately $673 million, after deducting estimated fees and expenses.

The company intends to use the net proceeds to repurchase up to $250 million of shares of its common stock under its stock repurchase program, subject to availability, and the remainder for general corporate purposes, which may include repayment of debt.

About Jarden:

Jarden Corporation is a leading provider of a diverse range of consumer products with a portfolio of over 100 trusted, quality brands sold globally. Jarden operates in three primary business segments through a number of well recognized brands, including: Outdoor Solutions: Abu Garcia®, Aero®, Berkley®, Campingaz® and Coleman®, ExOfficio®, Fenwick®, Gulp!®, Invicta®, K2®, Marker®, Marmot®, Mitchell®, PENN®, Rawlings®, Shakespeare®, Stearns®, Stren®, Trilene®, Völkl® and Zoot®; Consumer Solutions: Bionaire®, Breville®, Crock-Pot®, FoodSaver®, Health o meter®, Holmes®, Mr. Coffee®, Oster®, Patton®, Rival®, Seal-a-Meal®, Sunbeam®, VillaWare® and White Mountain®; and Branded Consumables: Ball®, Bee®, Bernardin®, Bicycle®, Billy Boy®, Crawford®, Diamond®, Dicon®, Fiona®, First Alert®, First Essentials®, Hoyle®, Kerr®, Lehigh®, Lifoam®, Lillo®, Loew Cornell®, Mapa®, NUK®, Pine Mountain®, Quickie®, Spontex®, Tigex®, and Yankee Candle®. Headquartered in Florida, Jarden ranks #383 on the Fortune 500 and has over 30,000 employees worldwide.

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