Colt Defense LLC, the firearms maker, has commenced an exchange offer for its 8.75 percent senior notes due 2017 and related guarantees.
The exchange offer is part of Colt’s strategy to restructure its balance sheet, which began with the refinancing of Colt’s $70.0 million senior secured term loan in November 2014 and $33.0 million senior secured term loan facility in February 2015. The exchange offer and the issuance of the new notes are designed to reduce the overall amount of Colt’s debt, reduce total cash interest payments, extend the maturity for the debt exchanged, and place Colt in a better position to attract new financing in the years to come. The company believes the exchange offer will also improve its performance and customer relations by addressing the key issues relating to Colt’s viability as a going concern.
Financial details of the exchange offer are here.
