Textron gets tenders for $224.7 million of 4.5% convertibles due 2013

By Angela McDaniels

Tacoma, Wash., Oct. 12 - Textron Inc. said holders tendered $224,702,000 principal amount, or 37.5%, of its $599,993,000 of 4.5% convertible senior notes due 2013 during a tender offer that expired at midnight ET on Oct. 12.

The company will pay $1,524.03 per $1,000 principal amount of notes plus accrued interest up to but excluding the settlement offer, which was expected to be Oct. 13.

The purchase price equals the sum of the average volume-weighted average price of the company's common stock multiplied by 57.1429, plus a fixed cash amount of $504.50.

The average volume-weighted average price is $17.8417. This is the average of the daily volume-weighted average price of the company's stock on each trading day during the 20 trading days ended on Oct. 12.

The tender offer began Sept. 14 and did not have a minimum tender condition. On Sept. 21, the company issued $500 million of new notes in two tranches and waived the condition that it issue at least $600 million of new notes.

Goldman Sachs & Co. (800 828-3182 or 212 357-4692), J.P. Morgan Securities LLC (800 261-5767 or 212 622-2614) and Morgan Stanley & Co. LLC were the dealer managers for the tender offer. Global Bondholder Services Corp. (866 794-2200 or 212 430-3774) was the depositary and information agent.

Textron is an aircraft, industrial and finance company based in Providence, R.I.

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