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.
|
| Issue: | Series C convertible preferred stock
|
| Amount: | $435 million
|
| Preferreds: | 435,000
|
| Price: | $1,000
|
| Dividends: | 5%, or 1.25% per quarter
|
| Conversion price: | $5.00
|
| Conversion ratio: | 200 common shares per preferred
|
| Conversion premium: | 22.25%
|
| Warrants: | No
|
| Investor: | Cleveland Apple Investor LLC
|
| Fees: | $2 million
|
| Pricing date: | Dec. 17
|
| Stock symbol: | NYSE: AVP
|
| Stock price: | $4.09 at close Dec. 16
|
| Market capitalization: | $1.7 billion
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
