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Fleetwood completes second exchange offer for 5% convertibles
By Angela McDaniels
Tacoma, Wash., Dec. 16 - Fleetwood Enterprises, Inc. said it received tenders for $19.9 million of its $100 million 5% convertible senior subordinated debentures due 2023 during an exchange offer that expired at 5 p.m. ET on Dec. 15.
Fleetwood will issue about 121.8 million shares of common stock to repurchase the tendered convertibles. The total number of shares was based on a price of $0.163 per share, which represents 95% of the average of the volume-weighted share prices during a 20-trading-day period, according to a company news release.
As previously reported, the company completed an initial exchange offer for the convertibles on Dec. 11. It issued $81.4 million of new 14% senior secured notes 2011 and 11 million shares of common stock for the $79 million of convertibles tendered in that offer.
Holders who did not tender into that offer were given the option of participating in the second exchange offer.
The convertibles were putable on Dec. 15. Fleetwood previously said that it would pay stock for any puts and that the exchange offer was meant to preserve liquidity and to avoid dilution of existing shareholders.
On Dec. 12, the company said it received formal notification from NYSE Regulation, Inc. that it is not in compliance with the continued listing standard that requires a market capitalization of at least $25 million over a 30-trading-day period and a minimum of either a $75 million average market capitalization or $75 million in stockholders' equity.
The company is looking to satisfy the continued listing standards with various options, including the exchange offers.
Fleetwood is based in Riverside, Calif., and produces recreational vehicles and manufactured homes through its subsidiaries.
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