LAKE FOREST, Ill. — Brunswick Corp. plans a private offering of $250 million of senior secured notes due 2016 to qualified institutional buyers, the company reported in a release today.
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 senior secured revolving credit facility on a first-priority lien basis.
Brunswick also has launched a cash tender offer and consent solicitation for any and 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. Aug. 21. The offer is scheduled to expire at midnight on Sept. 4.
Brunswick intends to use the net proceeds from the private offering of the new notes primarily to fund the tender offer for the 2011 notes. Any proceeds not used to fund the tender offer will be used for general corporate purposes, the company said.