Head to redeem 10% notes with new deal proceeds

New York, Jan. 16 - Head NV (B/B2) said that it intends to redeem all of the outstanding 10% senior notes due 2006 issued by its Head Holding Unternehmensbeteiligung GmbH (B3/B) subsidiary using proceeds of an offering of unsecured senior notes from its wholly owned subsidiary HTM Sport- und Freizeitgerte AG and Head NV and certain of its subsidiaries.

Head, a manufacturer and marketer of sports equipment based in Rotterdam, Netherlands, said the total redemption cost to the company for the 10% notes will be €69.2 million, consisting of €65.7 million of principal and premium of 5.375%, and will additionally include accrued interest up to the redemption date.

Head said that although the final size of the new bond offering will be determined at the time of pricing, it is expected to be €125 million.

In addition to redeeming the 10% notes, the company expects to use some of the proceeds from the bond sale to repay €31.5 million of certain of its and its subsidiaries' debt. The remainder of the proceeds will be used for working capital and general corporate purposes.

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