Goodman Global to redeem floaters due 2012, series A preferreds

By Jennifer Chiou

New York, March 22 - Goodman Global Inc. said it plans to use IPO proceeds for the redemption of all of its series A preferred shares and the redemption of up to $70.7 million of its floating-rate notes at 102% plus accrued interest to June 15, the redemption date, according to an S-1/A filing with the Securities and Exchange Commission.

Goodman previously said proceeds from the initial public offering would go towards the repayment of some of the company's term debt.

The preferreds have an aggregate liquidation preference with accrued dividends of $255.5 million. The floaters mature on June 15, 2012 and bear interest at Libor plus 300 basis points.

The company will offer 20,917,647 shares at between $16.00 and $18.00 per share in its IPO.

The Houston company noted that shareholders are selling another 2,611,764 shares, for which it will not collect proceeds.

JPMorgan is bookrunner and the company announced the addition of Merrill Lynch & Co. and Goldman, Sachs & Co. as joint leads as well as Credit Suisse, Deutsche Bank Securities, Lehman Brothers and KeyBanc Capital Markets as co-managers.

On March 2, the company said it was looking to lower the spread on its institutional term loan to Libor plus 175 bps from Libor plus 225 bps as part of the IPO.

Goodman is a manufacturer of heating, ventilation and air conditioning products. The company said it will have 68,889,837 shares outstanding after this offering.

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