By Angela McDaniels
Tacoma, Wash., May 10 - Stanley Black & Decker, Inc. remarketed $8.69 million principal amount of its floating-rate convertible notes due May 17, 2012, according to an FWP filing with the Securities and Exchange Commission.
The remarketed convertibles priced at 103.
The convertibles were issued as components of equity units. Each unit initially consisted of a contract to purchase shares of common stock and $1,000 principal amount of convertibles.
The settlement of the remarketing and of the purchase contracts will occur on May 17.
The company announced plans for the remarketing of the $320 million convertibles in April. Convertibles held by investors who elected to cash settle the purchase contracts by the close of business on May 7 were not remarketed.
The conversion rate is 15.5121 shares per $1,000 principal amount, which is equivalent to a conversion price of approximately $64.47 per share.
The notes are convertible into cash under certain circumstances and, at Stanley's election and when the volume-weighted average price of its common stock exceeds the conversion price during the observation period, into cash, shares or a combination of the two.
The convertibles bear interest at Libor minus 350 basis points, reset quarterly. The interest rate is currently zero.
The company had the option to reset the spread on the interest rate in connection with the remarketing, but it did not do so.
Citigroup Global Markets Inc. (212 723-7367) was the remarketing agent.
New Britain, Conn.-based Stanley Black & Decker is a provider of hand tools, power tools and related accessories.
| Issuer: | Stanley Black & Decker, Inc.
|
| Issue: | Remarketed floating-rate convertible notes
|
| Amount: | $8,694,000
|
| Maturity: | May 17, 2012
|
| Coupon: | Libor minus 350 bps, payable quarterly
|
| Price: | 103
|
| Conversion ratio: | 15.5121
|
| Conversion price: | $64.47
|
| Remarketing agent: | Citigroup Global Markets, Inc.
|
| Remarketing date: | May 10
|
| Settlement date: | May 17
|
| Stock symbol: | NYSE: SWK
|
| Stock price: | $61.23 at close May 10
|
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