Fifth & Pacific to repurchase, redeem 5% euro notes via notes proceeds

By Ashley Montgomery

Kansas City, Kan., June 6 - Fifth & Pacific Cos., Inc. intends to use the proceeds from its $150 million offering of 10½% senior secured notes due 2019 to repurchase €28.6 million of its 5% euro notes due 2013 in a privately negotiated transaction and to redeem the remaining €52.9 million of the 5% notes, according to news release.

The company said it temporarily borrowed $37.1 million from its revolver to fund the initial repurchase and proceeds from the new notes will be used to repay that debt.

Proceeds will also be used to fund consideration for the company's expected buyout of 51% interest in its joint venture with Kate Spade Japan.

Fifth & Pacific is the successor to Liz Claiborne, Inc., a New-York-based designer and marketer of retail-based brands.

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