Elizabeth Arden to sell shares, use proceeds to redeem 11¾% notes

New York, Oct. 2 - Elizabeth Arden Inc. (B1) said it plans to redeem a portion of its 11¾% senior secured notes due 2011, using the proceeds from a planned underwritten public common stock offering.

Elizabeth Arden, a Miami Lakes, Fla.-based cosmetics company filed a preliminary prospectus supplement to a previously filed shelf registration statement with the Securities and Exchange Commission.

It plans to sell approximately 4 million shares - 2.666 million to be offered by the company and the remaining 1.333 million to be offered by a selling stockholder, Unilever, which intends to convert some $16 million of Series D convertible preferred stock it now holds into common stock. Unilever is expected to grant the underwriters a 600,000-share greenshoe.

Credit Suisse First Boston will be acting as the bookrunner for the offering.

Elizabeth Arden provided no further information on the anticipated redemption of the 11¾% notes. It issued $160 million of the securities in January 2001. The company is currently in the process of redeeming $20 million of its 10 3/8% series D senior notes due 2007. The 10 3/8% notes, which were called on Sept. 4, will be redeemed on Oct. 24.

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