11/1/2010 10:09:00 AM
NEW BRIEFS
Stanley Black & Decker Inc. announced an offer to sell Convertible Preferred Units. The units consist of $550 million aggregate principal amount of junior subordinated notes due 2018 and contracts to purchase, for an aggregate of $550 million, shares of convertible preferred stock.
Stanley Black & Decker will use the proceeds to redeem its 5.902% Fixed Rate/Floating Rate Junior Subordinated Debt Securities due 2045; to improve the funded status of its pension obligations; to reduce outstanding short-term borrowings; and for other general corporate purposes.
The New Britain, CT-based company also intends to use a portion of the net proceeds of the Convertible Preferred Units offering to enter into capped call transactions with counterparties, which may include certain of the underwriters and their affiliates.
The convertible preferred stock will have a conversion rate that represents a premium above the closing price of the Company’s common stock on the date of pricing the Units.
The convertible preferred stock is expected to be delivered upon settlement of the purchase contracts in November 2015 (subject to early settlement in certain circumstances). If the convertible preferred stock is converted on or after the expected settlement date, the holders will receive cash, shares of the Company’s common stock, or a combination thereof, at the Company’s election.
The legacy Black & Decker Engineered Fastening business, Emhart Teknologies, posted strong third quarter results, with sales driven 30% higher by increased global vehicle production in the Americas and Japan. Unit volume increased 28%, while price had a negative 1% impact and acquisitions added 3%.
Stanley Black & Decker’s Industrial Division, which includes Emhart, reported Q3 sales grew more than doubled to $517 million, while profit soared to $80 million on a pro forma basis.
Nine-month Industrial sales increased to $1.27 billion, with segment profit increasing to $160.6 million. ©2010 GlobalFastenerNews.com
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