Newell Rubbermaid holders tender $324.7 million of 5.5% convertibles

By Angela McDaniels

Tacoma, Wash., Sept. 15 - Newell Rubbermaid Inc. received $324.7 million principal amount of its 5.5% convertible senior notes due 2014 in an exchange offer that expired at 11:59 p.m. ET on Sept. 14, according to a company news release.

For each $1,000 principal amount of convertibles, holders will receive 116.198 newly issued shares of common stock, $160.00 in cash and accrued interest up to but excluding the settlement date.

The number of shares offered per note is the same as the current conversion rate. Newell Rubbermaid stock closed at $16.05 (NYSE: NWL) on Aug. 16, giving 116.198 shares a value of $1,864.98.

Following settlement, approximately $20.3 million principal amount of the convertibles will remain outstanding.

The offer began Aug. 17 and is part of the company's capital structure optimization plan, which was announced Aug. 2 and is designed to simplify Newell Rubbermaid's capital structure and reduce interest expense. The plan also includes a $550 million issue of new senior notes due 2020, the repurchase of $500 million of shares and a tender offer for the company's $300 million of 10.6% notes due 2019 that expired Aug. 9.

Holders tendered $279,321,000 principal amount, or 93.1%, of the 10.6% notes. They received $1,437.50 per $1,000 principal amount of notes.

Global Bondholder Services Corp. (866 937-2200 or 212 430-3774) was the exchange agent and information agent for the exchange offer.

Atlanta-based Newell Rubbermaid makes consumer and commercial products.

© 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.