Jarden Corp. said it netted $487 million after institution investors buying $450 million in new senior subordinated convertible notes due 2018 exercised in full their option to purchase up to an additional $50 million in convertible notes from the company.
The convertible notes will pay interest semi-annually at a rate of 1.875 percent per annum. Upon conversion, holders will receive, at the company's discretion, cash, shares of the company's common stock or a combination thereof. The initial conversion rate of the convertible notes is 14.12 shares of Jarden common stock (subject to customary adjustments) per $1,000 principal amount of convertible notes, which is equivalent to an initial conversion price of approximately $70.85 per share, representing a conversion premium of 34 percent to the closing sale price of $52.87 per share of the company's common stock on Sept. 12, 2012.
The net proceeds from the offering, including proceeds resulting from the exercise of the initial purchasers' option to purchase an additional $50 million in principal amount of the convertible notes, are approximately $487 million, after deducting fees and expenses. The company used approximately $100 million of the net proceeds of the offering to repurchase shares of its common stock under its stock repurchase program at a price per share of $52.87 through negotiated transactions with investors in the convertible notes offering. The company intends to use the remaining net proceeds for general corporate purposes.
Jarden's Outdoor Solutions segment owns 11 sporting goods brands including Coleman, K2, Marmot and Rawlings.
