Kellwood to have subsidiaries guarantee convertibles in bow to rating agencies

By Ted A. Knutson

Washington, Jan. 12 - Bowing to pressure from the credit rating agencies, Kellwood Co. said it will have its subsidiaries guarantee the parent company's $200 million face value of 3.5% convertible senior debentures due 2034, 7.625% debentures due Oct. 15, 2017 and 7.875% debentures due July 15, 2009.

The Chesterfield, Mo.-based women's apparel manufacturer said the ratings agencies had threatened to reduce their ratings on the debt if the guarantees were not provided.

Kellwood's subsidiaries provided a similar protection for the company's $400 million unsecured credit facility in October.

The 3.5% convertibles were issued last summer.

Kellwood made the announcements in an 8-K filing with the Securities and Exchange Commission.

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