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Salton reduces interest bearing debt through exchange offer
29 Aug '05
3 min read
Lake forest, Illinois based home furnishing maker Salton Inc announced the successful completion of its previously announced private debt exchange offer for its outstanding 10-3/4 percent Senior Subordinated Notes due 2005 ("2005 Notes") and its outstanding 12-1/4 percent Senior Subordinated notes due 2008 ("2008 Notes," and together with the 2005 Notes, the "Notes"). The Company has accepted for exchange an aggregate of approximately $75.2 million of 2005 Notes (60.1 percent of the outstanding 2005 Notes) and approximately $90.1 million of 2008 Notes (60.1 percent of the outstanding 2008 Notes) that were validly tendered in the exchange offer.
In connection with the exchange offer, the Company has issued an aggregate of approximately $99.2 million in principal amount of new second lien notes, 2,041,617 shares of common stock of the Company and 135,230 shares of new Series C preferred stock of the Company with a face amount equal to $13.5 million. The second lien notes mature on March 31, 2008 and bear interest at LIBOR plus 7 percent. The Series C preferred stock is generally non-dividend bearing and is redeemable by the Company at the face amount on the fifth anniversary of the issuance date.
The Company also announced that, in connection with the exchange offer, the Company obtained the consent of the holders of a majority of the outstanding 2005 Notes and 2008 Notes to amend the indentures governing such Notes to eliminate substantially all of the restrictive covenants and certain events of default contained in such indentures. The Company has entered into supplements to the indentures governing the 2005 Notes and the 2008 Notes to reflect such amendments.
In connection with the exchange offer, the Company has issued an aggregate of approximately $99.2 million in principal amount of new second lien notes, 2,041,617 shares of common stock of the Company and 135,230 shares of new Series C preferred stock of the Company with a face amount equal to $13.5 million. The second lien notes mature on March 31, 2008 and bear interest at LIBOR plus 7 percent. The Series C preferred stock is generally non-dividend bearing and is redeemable by the Company at the face amount on the fifth anniversary of the issuance date.
The Company also announced that, in connection with the exchange offer, the Company obtained the consent of the holders of a majority of the outstanding 2005 Notes and 2008 Notes to amend the indentures governing such Notes to eliminate substantially all of the restrictive covenants and certain events of default contained in such indentures. The Company has entered into supplements to the indentures governing the 2005 Notes and the 2008 Notes to reflect such amendments.
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