Head announced that its wholly-owned subsidiary HTM Sport- und Freizeitgerte intends to offer unsecured senior notes guaranteed by Head N.V. and certain of its subsidiaries. The final size of the transaction, which will be determined at the time of pricing, is expected to be 125 million.
The offering is being made outside the United States and to qualified institutional buyers in the United States.
HTM has applied to list the notes on the Luxembourg Stock Exchange.
With the proceeds from this offering, all of the outstanding 10% senior notes due 2006 of Head Holding Unternehmensbeteiligung GmbH, another Head N.V. subsidiary, will be redeemed. The redemption price will be approximately 69.2 million, consisting of 65.7 million of principal and premium of 5.375%, and will additionally include accrued interest to the redemption date.
In addition, HTM intends to repay approximately 31.5 million of certain of its and its subsidiaries's debt. The remainder of the proceeds will be used for working capital and general corporate purposes.
