Fleetwood planning to offer new convertibles in exchange for 6% convertible trust preferreds

New York, July 22 - Fleetwood Enterprises, Inc. is planning an exchange in which it will offer new convertible senior subordinated debentures due 2025 for all the existing 6% convertible trust preferred securities due 2028 of Fleetwood Capital Trust.

The Riverside, Calif., maker of recreational vehicles and manufactured housing said the exchange is intended to reduce its outstanding liabilities, eliminate "all or a substantial portion" of the outstanding deferred distributions on the trust preferreds, reduce its interest expense and improve its capital structure and credit statistics.

Details of the exchange were not disclosed in an S-4 registration statement filed by the company with the Securities and Exchange Commission. Blanks in the document included the exchange ratio, the coupon and conversion price of the new convertibles and timing for the offer.

Fleetwood currently has $201.25 million liquidation amount of the trust preferreds outstanding.

The offer is subject to various conditions including the receipt of consents from holders of at least 66 2/3% of the trust preferreds and at least $100 million of the trust preferreds being tendered.

The consent solicitation is intended to "clarify" the terms of the securities for the purposes of the exchange.

Lehman Brothers is dealer manager.

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