Evenflo announces restructuring, noteholders to receive 40% of equity

New York, Nov. 19 - Evenflo Co., Inc. said it reached agreement on a recapitalization with its bank lenders, holders of 70% of its $110 million outstanding 11¾% senior notes due 2006 and its controlling shareholders, an affiliate of Kohlberg Kravis Roberts & Co., LP.

The Vandalia, Ohio make of infant and juvenile products said it will offer noteholders either equity in the recapitalized company or $150 cash per $1,000 principal amount of the notes. If all noteholders opt for equity they will have a 40% stake in the company.

In addition, $15 million of bank debt will be extinguished in the recapitalization.

Evenflo will receive $18 million of new equity from its controlling shareholder plus the amount needed to pay cash to noteholders, with that cash being applied to buying equity.

If successfully completed, the recapitalization will reduce the company's debt to $72 million from $215 million.

The recapitalization will be implemented through a tender and exchange offer. Conditions will include participation by 100% of noteholders.

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