Brunswick makes $250 million private offering

Posted on

Brunswick Corp. today announced its intent to offer $250 million aggregate principal amount of senior secured notes due 2016 in a private offering to qualified institutional buyers.

The new notes will be secured by first-priority liens on Brunswick’s headquarters and owned domestic retail bowling centers and by second-priority liens on substantially all of the assets that secure Brunswick’s existing secured revolving credit facility on a first-priority lien basis.

Brunswick also announced it has launched a cash tender offer and consent solicitation for all of its outstanding 5 percent notes due 2011. As of July 4, $150 million aggregate principal amount of the 2011 notes was outstanding.

The total consideration for the tender offer will consist of $970 of tender offer consideration and a consent payment of $30 per $1,000 principal amount of the 2011 notes. The total consideration will only be paid to holders that validly tender and do not validly withdraw their tenders prior to 5 p.m. EDT Aug. 21, 2009.

The tender offer expires at midnight EDT, Sept. 4.

“We believe investors should view this announcement positively as it removes 2010 refinancing risk and further enhances [Brunswick's] near/intermediate-term liquidity position,” said Tim Conder, senior analyst with Wells Fargo Securities.

Click here for the full release.

Welcome to TradeOnlyToday’s premium content! To continue reading, please register now, for access to 10 free stories per month. Or subscribe, for unlimited access to all TradeOnlyToday content!

Click here to Register ... it's free!

Basic subscription: Registered members get free access to 10 premium content stories each month!

Not a member yet? Click here to Register!

Already a member? Click here to Login!

Subscribe ... for unlimited access!

Individual subscription: $29 for unlimited site access for one year.

Small Business subscription: $140 for unlimited site access for up to 10 members of a company for one year.

Corporate subscription: $300 for unlimited site access for all members of a company for one year.

You may close this dialog after seconds.

Comments

5 comments on “Brunswick makes $250 million private offering

  1. Rich Lazzara

    Very interesting move.  I wonder if this is the future for boat companies?  I believe it is as the ROI the markets demand on these companies is very hard to maintain in our industry.

  2. ABS

    The past few months have shown how challenged the boat and yacht building industry can be, with most companies starved for capital in even the good years. Entrepreneur led innovation as well as consumer demands for something new continue to place demands on capital to meet the  needs of the buyer for new product. One can only speculate how privately owned enterprises, always capital challenged, can address the global marketplace.

  3. Shinyo

    Rich,What ROI? Looking at all the Quartley results and YTD information,I would be surprise to see how many institutional buyers would take this paper. With the current results and still negative forcasts,I wonder how much Brunswick will pay in interest rate or discounting the paper to lure investors to hold their paper?

  4. Grand Man

    I think this is probably a good move by the largest marine manufacturer in the world. They have reduced expenses, and have a strategy going forward into the future. They are positioning themselves when the economy improves. People haven’t stopped buying boats, the credit companies have downsized the industry with new policies etc. 
    The conditions of late 70′s and 80′s should be a lesson for the future.  Things aren’t exactly the same, but overall the same challenges.  High interest rates, no gas, and a Federal Band on weekend boating  Today, low interest, No Band on boating, Gas is available.  Again, credit for OEM’s and dealers have crippled the industry.
    If you want to focus on the negatives, it seems the future will never get much better. However, if you make good choices and plan for an upturn in economic conditions, the future can, and will be better. These actions will have Brunswick in a much better position than competitiors for gaining market share, and offering better choices.

  5. Capt

    You all have a point. The manufactures with the overhead costs are having a hard time staying a float, but shifting risk out can only be done once. The dealers are selling the boats in inventory but not replacing them from the OEMs and when it is time to do so they will be looking for something new, not the old technologies repackaged in a different shell. Brunswick is depending on their new propulsion systems in thier boats but Volvo is closing the gap fast if not already passed them.
    Just raising the money and continuing to do business as usuall will not pull a company thru these hard times.  Remember they have already shut down plants, fired thousands, furloughed the remaining employees at what cost to the product they produce. How deep do you cut into your work force to save management positions. Not with standing Mercury’s problem with the Union.
    I agree that they are in the best position at this time and this will help them but if the market doesn’t turn everyone will be in trouble.
     
     
     

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments Policy.

Vote Today

Will you be attending IBEX and the Fort Lauderdale International Boat Show?

View Results

Loading ... Loading ...

Search Boats for Sale

Length
Year
Price

Login to Trade Only Today

Lost Password