New Issue: K2 $75 million convertibles yield 5.0%, up 30%

By Ronda Fears

Nashville, June 5 - K2 Inc. sold $75 million of seven-year convertible senior notes at par to yield 5.0% with a 30% initial conversion premium in the Rule 144A market, via lead manager Goldman Sachs & Co.

Carlsbad, Calif.-based K2, a sporting goods company, plans to use proceeds to repay debt under its $205 million revolving credit facility, which will increase its borrowing availability, and for general corporate purposes.

Terms of the deal are:

Issuer: K2 Inc.

Issue:	Convertible senior notes
Lead manager:	Goldman Sachs & Co.
Amount	$75 million
Maturity:	June 15, 2010
Coupon:	5.0%
Price:	Par
Yield to maturity:	5.0%
Conversion premium:	30%
Conversion price:	$13.14
Conversion ratio:	76.1035
Call:	Non-callable for 5 years
Pricing date:	June 4
Settlement:	June 10

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