Fleetwood exchange offer oversubscribed, $265 million of trust preferreds tendered

New York, Jan. 7 - Fleetwood Enterprises, Inc. said its exchange offer for its convertible trust preferreds were hugely oversubscribed.

According to preliminary results, $264.68555 million liquidation amount of the old securities were tendered in the exchange. Fleetwood is offering to accept up to $86.25 million of the securities, which it will do on a pro rata basis.

In exchange, the Riverside, Calif. manufacturer of recreational vehicles and manufactured housing will issue $37.95 million of Fleetwood Capital Trust II's 9.5% convertibles trust securities due 2013.

The old convertibles were Fleetwood Capital Trust's 6% convertibles trust securities due 2028 of which there was $287.5 million outstanding.

The exchange offer expired Jan. 4.

The new securities have a conversion price of $12.56, a 15% premium to the daily volume-weighted average of the company's stock for the five trading days ending Dec. 27.

Apart from the liquidation amount of $22 instead of $50 and the conversion price, the new convertibles are identical to a new issue sold by Fleetwood in December. That was upsized to $150 million from a planned $50 million and came to market with a yield of 9.5% and an initial conversion premium of 15%.

The exchange and new offering is part of a debt restructuring being carried out by Fleetwood with the aim of enhancing liquidity and improving its balance sheet by increasing shareholders' equity and increasing its capacity to carry senior debt, according to documents filed with the Securities and Exchange Commission.

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