FTD cuts planned 7¾% notes redemption with IPO funds to $20 million from $26 million

By Ted A. Knutson

Washington, Jan. 21 - FTD Group, Inc. reduced the principal amount of 7¾% senior subordinated notes due 2014 it intends to redeem with a planned initial public offering of common stock to $20.2 million from $25.6 million.

The debt will be redeemed at 108% of face value.

This announcement came in an S-1/A filing with the Securities and Exchange Commission.

The latest amendment to the Downers Grove, Ill.-based florist IPO prospectus commits all greenshoe proceeds for the redemption of more 2014 notes. The company's most immediate previous filing for the IPO said over-allotment money would be used "to further reduce our indebtedness."

Gross proceeds from the over-allotment would be $29.9 million, assuming the IPO comes at the midpoint of FTD's forecast price range of $12 to $14 per share. Without the greenshoe, the IPO is projected to net $205 million.

The florist may redeem up to $61 million of the notes by Feb. 15, 2007 with proceeds from equity offerings.

FTD's February 2004 merger was financed largely with $175 million face value of the 2014 notes and $144.4 million divided equally between 14% senior redeemable exchangeable cumulative preferred stock and 12% junior redeemable exchangeable cumulative preferred shares.

The preferred stock was issued to FTD Group's parent, by Green Equity Investors IV. Repayment of the preferred stock will consume $183.2 million of the IPO.

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