Deal with Cleveland Apple Investor sells 435,000 preferreds at $1,000
By Devika Patel
Knoxville, Tenn., Dec. 21 – Avon Products, Inc. arranged a $435 million sale of series C convertible preferred stock with Cleveland Apple Investor LLC on Dec. 17, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company will sell 435,000 preferreds at $1,000 per preferred. Cumulative dividends will accrue daily on the preferreds at the rate of 1.25% per quarter.
The preferreds are each initially convertible into 200 common shares, for an initial conversion price of $5.00 per share, a 22.25% premium to the Dec. 16 closing price of $4.09.
Settlement is expected in Spring 2016.
Avon is a New York-based beauty products company.
Issuer: | Avon Products, Inc.
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Issue: | Series C convertible preferred stock
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Amount: | $435 million
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Preferreds: | 435,000
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Price: | $1,000
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Dividends: | 5%, or 1.25% per quarter
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Conversion price: | $5.00
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Conversion ratio: | 200 common shares per preferred
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Conversion premium: | 22.25%
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Warrants: | No
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Investor: | Cleveland Apple Investor LLC
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Fees: | $2 million
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Pricing date: | Dec. 17
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Stock symbol: | NYSE: AVP
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Stock price: | $4.09 at close Dec. 16
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Market capitalization: | $1.7 billion
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