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.